Question 1

Which Article of the Indian Constitution refers to the 'Annual Financial Statement'?

Accepted Answer

Article 112. Article 112 mandates the President to lay the Annual Financial Statement before Parliament. This document is popularly known as the Union Budget. It estimates the receipts and expenditures of the Government for a specific financial year.

Question 2

The financial year in India currently runs from?

Accepted Answer

April 1 to March 31. The Indian financial year follows the April to March cycle. This system was adopted in 1867 to align with the British Empire's financial calendar. All tax assessments and government budgeting are based on this period.

Question 3

Who was the first Finance Minister of Independent India to present the first budget?

Accepted Answer

R.K. Shanmukham Chetty. R.K. Shanmukham Chetty presented the first budget of independent India on November 26, 1947. This initial budget was meant for a short period of seven and a half months. He was a noted economist and lawyer.

Question 4

The 'Railway Budget' was merged with the Union Budget in which year?

Accepted Answer

2017. The 92-year-old practice of having a separate Railway Budget ended in 2017. This merger was based on the recommendations of the Bibek Debroy Committee. It aimed to create a holistic picture of the government's finances.

Question 5

Which type of budget is prepared when estimated government expenditure exceeds estimated revenue?

Accepted Answer

Deficit Budget. A deficit budget indicates that the government intends to spend more than it earns in a year. This gap is usually filled through public borrowing or other financial instruments. It is often used as a tool to stimulate economic growth during a slowdown.

Budget Basics — Set 1