A budget is the government's annual financial plan that estimates expected revenue and expenditure for a fiscal year. It is one of the most important tools of public finance because it helps allocate resources, promote economic growth, reduce inequality, and maintain fiscal discipline. Budgets are classified into different types based on their financial position, purpose, and presentation, such as balanced, surplus, deficit, revenue, capital, productive, unproductive, open, and closed budgets. Understanding these concepts is essential for students preparing for banking, Loksewa, and other competitive examinations, as questions on budget and its types frequently appear in objective tests.
1. Which of the following is an annual financial
statement of the government?
A) Balance
Sheet B) Budget
C) Income Statement D) Cash Flow Statement
2. The main objective of the budget is to …….
A) Reduce
taxes B) Mobilize
resources
C) Increase
exports D) Control inflation
3. Who approves the budget?
A) Judiciary B) Executive C) Legislature D) Public
4. Which of the following is NOT a component of the budget?
A) Tax
Revenue B) Capital Receipts C) Grants-in-Aid D) Profit
5. Revenue receipts are those receipts which neither
create liability nor reduce assets.
A) True B) False
6. Loans and advances are a part of ……..
A) Revenue
Receipts B) Capital Receipts
C) Revenue
Expenditure D) Capital Expenditure
7. A budget is a ……. document.
A) Legal B) Financial C) Policy D) All of these
8. A surplus
budget is when ……. .
A) Receipts = Expenditure
B) Receipts >
Expenditure
C) Receipts < Expenditure
D)
Expenditure is zero
9. Which budget shows all items in gross amounts without
any deductions?
A) Balanced Budget
B) Open (Gross) Budget
C) Closed (Net) Budget
D) Deficit Budget
10. A deficit budget is when ….. .
A) Receipts = Expenditure
B) Receipts >
Expenditure
C) Receipts < Expenditure
D) Expenditure = 0
11. Which budget is also known as ‘Sound Budget’?
A) Deficit Budget
B) Surplus Budget
C) Balanced Budget
D) Unproductive Budget
12. Which type of budget does not create assets for the
government?
A) Productive Budget
B) Unproductive Budget
13. Capital expenditure results in ……. benefits.
A) Short-term
B) Long-term
C) Immediate
D) None of these
14. Which budget includes only revenue receipts and
revenue expenditure?
A) Capital
Budget B) Revenue Budget
C) Balanced
Budget D) Productive Budget
15. Which of the following is a capital receipt?
A) Tax
Revenue B) Interest Received
C) Loan
Received D) Rent Received
16. In Nepal, the Union Budget is presented in the month
of ________.
A) Baishakh B) Jetha C) Asar D) Shrawan
17. Which budget focuses on increasing productivity?
A) Productive
Budget B) Unproductive Budget
C) Revenue
Budget D) Balanced Budget
18. Which of the following is an example of capital
expenditure?
A)
Salaries B)
Interest Payment
C) Building a
road D) Pension
19. Which budget is also called ‘Deficit Budget’?
A) Closed
Budget B) Balanced Budget
C) Unbalanced
Budget D) Open Budget
20. Which budget shows the net amount after deducting
recoveries from expenditure?
A) Open
Budget B) Closed (Net)
Budget
C) Revenue
Budget D) Capital Budget
| Q. No. | Correct Answer |
|---|---|
| 1 | B) Budget |
| 2 | B) Mobilize resources |
| 3 | C) Legislature |
| 4 | D) Profit |
| 5 | A) True |
| 6 | B) Capital Receipts |
| 7 | D) All of these |
| 8 | B) Receipts > Expenditure |
| 9 | B) Open (Gross) Budget |
| 10 | C) Receipts < Expenditure |
| 11 | C) Balanced Budget |
| 12 | B) Unproductive Budget |
| 13 | B) Long-term |
| 14 | B) Revenue Budget |
| 15 | C) Loan Received |
| 16 | B) Jetha |
| 17 | A) Productive Budget |
| 18 | C) Building a road |
| 19 | C) Unbalanced Budget |
| 20 | B) Closed (Net) Budget |
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