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What is the main responsibility of the Finance Ministry during the budget preparation?
- a)Preparation of estimates for all government departments
- b)Vetting and consolidation of estimates received from departments
- c)Final approval of all proposed budget expenditures
- d)Execution of budget activities and revenue collection
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the main responsibility of the Finance Ministry during the bud...
Understanding the Role of the Finance Ministry in Budget Preparation
The Finance Ministry plays a crucial role in the budget preparation process of a government. Among its various responsibilities, the vetting and consolidation of estimates received from departments is fundamental. This involves several key activities:
1. Coordination with Government Departments
- The Finance Ministry collaborates with all government departments to gather budgetary estimates.
- Each department submits its financial needs, which reflect their operational and developmental priorities.
2. Vetting of Estimates
- The Finance Ministry meticulously reviews the estimates to ensure they align with national priorities and fiscal discipline.
- This vetting process involves assessing the feasibility and necessity of the proposed expenditures.
3. Consolidation of Estimates
- After reviewing, the Ministry consolidates the estimates into a coherent budget proposal.
- This consolidation ensures that the budget reflects a balanced approach, considering both revenue and expenditure.
4. Ensuring Fiscal Responsibility
- The Ministry ensures that the overall budget adheres to fiscal targets and macroeconomic stability.
- This responsibility includes evaluating the impact of proposed expenditures on the overall economy.
Conclusion
In summary, option 'B' is correct because the main responsibility of the Finance Ministry during the budget preparation phase is the vetting and consolidation of estimates. This critical function ensures that the budget is comprehensive, realistic, and aligned with the government's economic policies. Ultimately, it sets the stage for effective budget execution and monitoring in subsequent phases.
The Finance Ministry plays a crucial role in the budget preparation process of a government. Among its various responsibilities, the vetting and consolidation of estimates received from departments is fundamental. This involves several key activities:
1. Coordination with Government Departments
- The Finance Ministry collaborates with all government departments to gather budgetary estimates.
- Each department submits its financial needs, which reflect their operational and developmental priorities.
2. Vetting of Estimates
- The Finance Ministry meticulously reviews the estimates to ensure they align with national priorities and fiscal discipline.
- This vetting process involves assessing the feasibility and necessity of the proposed expenditures.
3. Consolidation of Estimates
- After reviewing, the Ministry consolidates the estimates into a coherent budget proposal.
- This consolidation ensures that the budget reflects a balanced approach, considering both revenue and expenditure.
4. Ensuring Fiscal Responsibility
- The Ministry ensures that the overall budget adheres to fiscal targets and macroeconomic stability.
- This responsibility includes evaluating the impact of proposed expenditures on the overall economy.
Conclusion
In summary, option 'B' is correct because the main responsibility of the Finance Ministry during the budget preparation phase is the vetting and consolidation of estimates. This critical function ensures that the budget is comprehensive, realistic, and aligned with the government's economic policies. Ultimately, it sets the stage for effective budget execution and monitoring in subsequent phases.
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What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer?.
What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main responsibility of the Finance Ministry during the budget preparation?a)Preparation of estimates for all government departmentsb)Vetting and consolidation of estimates received from departmentsc)Final approval of all proposed budget expendituresd)Execution of budget activities and revenue collectionCorrect answer is option 'B'. Can you explain this answer?.
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