Question

Arrange the following items with respect to Union Budget in India in descending order (highest to lowest ₹ crore):

A. Revenue Expenditure
B. Capital Expenditure
C. Revenue Receipts
D. Capital Receipts

Options:

1. A, C, D, B
2. A, C, B, D
3. C, A, D, B
4. C, A, B, D

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Answer 1

Answer: (1) A, C, D, B

Explanation:

To determine the correct order, it's essential to understand the typical magnitudes of these categories in the Union Budget:

1. Revenue Expenditure (A): This is generally the largest component in the Union Budget, including items like interest payments, subsidies, salaries, and pensions. It constitutes the bulk of government spending.

2. Revenue Receipts (C): This includes tax revenues (like income tax, GST) and non-tax revenues (like dividends from public sector enterprises). It is usually the second-largest component.

3. Capital Receipts (D): These include borrowings, disinvestment, and recovery of loans. They are typically smaller than revenue receipts but still significant.

4. Capital Expenditure (B): This is generally the smallest component, involving expenditures on assets such as infrastructure, machinery, and equipment.

Thus, the correct descending order from highest to lowest is:

A (Revenue Expenditure) > C (Revenue Receipts) > D (Capital Receipts) > B (Capital Expenditure)

The correct answer is (1) A, C, D, B.