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Consider the following statements:
Statement-I:
Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.
Statement-II:
Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.
Which one of the following is correct in respect of the above statements?
  • a)
    Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • b)
    Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • c)
    Statement-I is correct, but Statement-II is incorrect
  • d)
    Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:Statement-I:Deficit Budget is propos...
Understanding Budget Types
When analyzing budgets, it's important to understand the implications of a deficit and surplus budget, as highlighted in the given statements.
Statement-I Explanation
- Statement-I asserts that a Deficit Budget occurs when expenditures exceed receipts.
- This indicates that the government is spending more than it earns, which can be a strategic choice to stimulate the economy or address urgent needs despite financial limitations.
- Thus, Statement-I is correct.
Statement-II Explanation
- Statement-II claims that a Surplus Budget is proposed when expenditures are less than receipts.
- While this is true, the claim that it symbolizes a "lower concern towards development" is misleading.
- A surplus budget may reflect prudent financial management, allowing for savings or debt reduction, rather than a lack of concern for development.
- Therefore, Statement-II is incorrect as it misinterprets the implications of a surplus budget.
Conclusion
- Since Statement-I is correct and Statement-II is incorrect, the correct answer is option 'C': Statement-I is correct, but Statement-II is incorrect.
- Understanding the nuances of these budget types is crucial for evaluating government financial strategies and their impacts on economic development.
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Community Answer
Consider the following statements:Statement-I:Deficit Budget is propos...

Statement-I correctly defines a deficit budget as one where expenditures exceed receipts, indicating spending beyond means, which aligns with the provided information on deficit budgets. However, Statement-II incorrectly defines a surplus budget as one where expenditures are less than receipts, indicating a lower concern towards development. This is inaccurate as a surplus budget symbolizes financial health and the ability to allocate resources to development, not a lack of concern.
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Consider the following statements:Statement-I:Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.Statement-II:Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.Which one of the following is correct in respect of the above statements?a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic) Statement-I is correct, but Statement-II is incorrectd) Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements:Statement-I:Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.Statement-II:Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.Which one of the following is correct in respect of the above statements?a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic) Statement-I is correct, but Statement-II is incorrectd) Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:Statement-I:Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.Statement-II:Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.Which one of the following is correct in respect of the above statements?a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic) Statement-I is correct, but Statement-II is incorrectd) Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:Statement-I:Deficit Budget is proposed when expenditures exceed receipts, indicating spending beyond means.Statement-II:Surplus Budget is proposed when expenditures are less than receipts, symbolizing a lower concern towards development.Which one of the following is correct in respect of the above statements?a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic) Statement-I is correct, but Statement-II is incorrectd) Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?.
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