Which of the following are the components of a budget?Revenue BudgetCapital BudgetBoth (a) and (b)Neither (a) nor (b) (2024)

FAQs

What are the components of the Budget? ›

There are two primary components of a government budget, namely – the capital budget and revenue budget. Capital budget accounts for the assets and liabilities under the government. Revenue budget, on the other hand, accounts for the total revenue generated and the expenses met through this revenue. 3.

Capital Budget focuses on long-term investments like infrastructure and assets, while revenue Budget pertains to day-to-day operational expenses. Capital Budget includes capital expenditure and loans, while Revenue Budget comprises revenue receipts and revenue expenditure like salaries and maintenance costs.

The budget has two broad components: Revenue budget and Capital budget. Revenue budget includes revenue expenditure and revenue receipts. Capital budget includes capital expenditure and capital receipts.

Definition: Revenue Budget consists of the revenue receipts of the government (tax revenues and other revenues) and the expenditure met from these revenues. Description: Tax revenues comprise proceeds of taxes and other duties levied by the Union.

Some of the examples of revenue budget include income from taxes, dividends, investments, and profits. Capital budget examples include disinvestments that reduce the government's share of total assets and increase liabilities.

There are several capital budgeting analysis methods that can be used to determine the economic feasibility of a capital investment. They include the Payback Period, Discounted Payment Period, Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.

Main Components of a Budget

The two main components are income and expenses. For a personal budget, income includes take-home pay as well as any additional income from freelancing, alimony, and outside projects. For a business, management will look at sales and other assets.

Which is included in the capital budget? ›

d i The main items of capital budget are receipts and expenditure for capital Financial gains. It also includes loans raised by Government from public Reserve Bank and other parties and from foreign Governments and bodies.

The Key Components of a Budget

Learn about net income, fixed expenses, variable expenses, and discretionary expenses and examples of each. If credit card debt is throwing off your budget and causing you stress, we can help.

Capital receipts are receipts of the government which create liabilities or reduce financial assets, e.g., market borrowing, recovery of loan, disinvestment, etc. The revenue receipts include both tax revenue like income tax, excise duty and non-tax revenue like interest receipts, dividends, profits, etc.

The main component of revenue is the quantity sold multiplied by the price. For a service company, this is the number of service hours multiplied by the billable service rate. For a retailer, this is the number of goods sold multiplied by the sales price.

Revenue items relevant to budgeting and forecasting include: sales revenue, interest income, investment income, and other income. Expenditure items that are relevant to budgeting and forecasting include: rent, utilities, payroll, advertising, office supplies, professional services, and taxes.

Any successful budget must connect three major elements – people, data and process. A breakdown in any of these areas can have a major impact on your results. How do you bring together the 3 essential elements of a budget? Here are some tips.

The basic structure of a budget has three parts: revenue, expenses, and net profit.