Question

The Government Budget is described as an annual financial statement that presents, in detail, which of the following for a financial year?

Options

• The profits and losses of public sector undertakings

• The actual receipts and actual expenditures of the previous financial year

• The estimated receipts and proposed expenditures of the government

• Only the taxation policy of the government

Answer 1

The Government Budget is an annual financial statement describing in detail the estimated receipts and proposed expenditures of the government for a financial year. Since it contains estimates, it is forward-looking for the coming year rather than a record of actual past transactions.