In India, which of the following is NOT a type of budget?
- A.Balanced
- B.Surplus
- C.Losses
- D.Reserved
Correct answer
Explanation
The correct answer is D, Reserved. A budget is classified by the relation between receipts and expenditure, which gives three kinds only: a balanced budget, in which estimated receipts equal estimated expenditure; a surplus budget, in which receipts exceed expenditure; and a deficit budget, in which expenditure exceeds receipts. There is no category called a reserved budget in public finance, which makes D the exception asked for.
Option A, balanced, is a recognised type and was the classical ideal of public finance. Option B, surplus, is a recognised type and is used to take demand out of an overheated economy. Option C, losses, is loosely worded but points to the deficit budget, the type a state such as Bihar normally presents because its expenditure on development exceeds its own receipts. State budgets in India are almost always deficit budgets, financed by central transfers and by borrowing under Article 293, which is why the fiscal responsibility law caps the deficit.
Read the full article: Economy and State Budget of Bihar: Sectors, Articles and Facts
Practice Questions
View allUnder which Article of the Constitution is the annual financial statement, that is the budget, laid before the legislature of a state such as Bihar?
- A.Article 112
- B.Article 202
- C.Article 266
- D.Article 293
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Article 202 requires the Governor to cause a statement of the estimated receipts and expenditure of the state for every financial year, called the annual financial statement, to be laid before the House or Houses of the legislature.
Read the full explanation →Money withdrawn from the Consolidated Fund of Bihar after the demands for grants are voted is authorised by:
- A.A Finance Bill
- B.An Appropriation Bill
- C.A vote on account
- D.A supplementary demand
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Under Article 204 an Appropriation Bill is introduced after the Vidhan Sabha has voted the demands for grants, and it alone makes the withdrawal of money from the Consolidated Fund of the State lawful; no money may leave that fund except under an appropriation made by law.
Read the full explanation →The Contingency Fund of a State, from which the Chief Minister can meet unforeseen expenditure, is provided by which Article?
- A.Article 199
- B.Article 203
- C.Article 267(2)
- D.Article 280
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Article 267(2) allows the legislature of a state to establish a Contingency Fund of the State by law, placed at the disposal of the Governor, from which advances can be made for unforeseen expenditure pending authorisation by the legislature, the amount being recouped later through a supplementary demand.
Read the full explanation →Bihar lost almost its entire mineral belt when which state was carved out of it in November 2000?
- A.Chhattisgarh
- B.Jharkhand
- C.Uttarakhand
- D.Odisha
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The Bihar Reorganisation Act, 2000 created Jharkhand on 15 November 2000, and with the Chhotanagpur plateau Bihar lost its coal, iron ore, copper, bauxite and mica, along with the heavy industry at Jamshedpur, Bokaro and Ranchi.
Read the full explanation →Bihar is the largest producer in India of which of the following?
- A.Makhana
- B.Groundnut
- C.Coffee
- D.Cotton
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Makhana, the gorgon nut or fox nut grown in the ponds and wetlands of the Mithila region, comes overwhelmingly from Bihar, and the produce of the region carries the geographical indication tag Mithila Makhana.
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