Understanding India's Annual Financial Statement

The video explains key budgetary terms relevant during an election year, such as normal budget, interim budget, and vote on account. It details how the government presents a normal budget under Article 112 of the Constitution and the circumstances under which an interim budget is presented, such as during an election year or when a caretaker government is in place. The interim budget covers revenue and expenditure for a short period, while a vote on account allows the government to withdraw funds from the Consolidated Fund of India for its expenditure needs.

What is the primary purpose of the annual financial statement presented by the government of India?

• To announce new government projects

• To present the government's revenue and expenditure

• To seek approval for new taxes

• To outline the government's policy changes

Under which article of the Constitution does the government present the annual financial statement?

• Article 113

• Article 112

• Article 111

• Article 110

What is the main focus of the demand for grant?

• Revenue generation

• Tax collection

• Expenditure requirements

• Policy formulation

In what situation might the government present an interim budget instead of a normal budget?

• When there is a surplus in the budget

• During a financial crisis

• When the government has a full majority

• During an election year

What is typically not altered during the presentation of an interim budget?

• Policy changes

• Corporate tax structure

• Expenditure requirements

• Revenue details

Which of the following is an example of a change made during an interim budget?

• Introduction of new welfare schemes

• Reduction in education funding

• Alteration of corporate tax structure

• Increase in defense budget

Why do governments generally refrain from making major policy changes in an interim budget?

• To focus on revenue generation

• To ensure continuity of existing projects

• To maintain stability until a new government is formed

• To avoid public backlash

What is the vote on account primarily used for?

• To approve new government projects

• To present a full-year budget

• To withdraw money from the Consolidated Fund of India

• To introduce new taxes

What does the Consolidated Fund of India contain?

• Only non-tax revenue

• Both tax and non-tax revenue

• Only tax revenue

• Only borrowed funds

How does the interim budget differ from the vote on account?

• Interim budget is presented by the President, vote on account by the Prime Minister

• Interim budget covers revenue and expenditure, vote on account covers only expenditure

• Interim budget is for a full year, vote on account is for a few months

• Interim budget includes policy changes, vote on account does not