Chapter: 8
Government Finance: BBS Second Macro Economics Note
Answer in Both English and Nepali Medium
Important Question Answer:
1. What is a budget?
Answer- It is the statement of estimated income and expenditure of the government for the next financial year. It is created by the Ministry of Finance, approved by the Legislature, and then certified by the Head of State.
2. Explaining the government budget, write the contents/parts of the government budget.
It is also called public budget. It is the statement of estimated income and expenditure of the government for the coming financial year.
It is created by the Ministry of Finance and approved by the Legislature and then certified by the Head of State.
Government Budget Contents/Parts
1. A review of the past
While preparing the next year’s budget, past expenses and income are reviewed. In addition, efforts are made to improve the previous deficiencies.
2. Government expenditure estimates for the coming year.
Estimates of government expenditure in the coming year under various headings.
Under this, current expenses and future expenses are estimated. Current expenses include regular expenses such as salaries and allowances, while capital expenses include construction and purchases.
3. Purpose of budgeting
The public budget prepares the budget by taking into account the political, economic and social conditions of the country and the availability of resources.
4. Estimates of government revenue
The budget is prepared only by estimating the revenue to be collected from sources such as tax, non-tax or foreign aid.
5. A study of low finance
When the government income is low, the budget is created only by identifying the sources of financing.
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