2010 General Studies, all questions

UPSC Prelims 2010 · General Studies

Question 77: Economy and Social Development

Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament ?

aDepartment of Revenue
bDepartment of Economic Affairs
cDepartment of Financial Services
dDepartment of Expenditure

AnswerThe answer is (b).

The Budget Division of the Department of Economic Affairs in the Union Ministry of Finance prepares the Union Budget and the Annual Financial Statement for Parliament. The Department of Revenue deals with taxes, the Department of Expenditure with the management of public expenditure, and the Department of Financial Services with banking and insurance. Remember: Budget = Department of Economic Affairs.

Why each option is right or wrong
  • (a) The Department of Revenue deals with taxation, not the budget as a whole.
  • (b) Right: the Budget Division of the Department of Economic Affairs prepares the Budget.
  • (c) The Department of Financial Services deals with banking and insurance.
  • (d) The Department of Expenditure manages public expenditure, not the Budget's preparation.

Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedPrevious questionNext question

Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.