Q. Consider the following statements:
1.The word budget is drawn from French word “Bugeut”.
2.Article 112 of Indian Constitution has provision for Annual Financial Statement.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Explanation: An annual financial statement of income and expenditure is generally used for a government, but it could be of a firm, company, corporation etc.

  • The ‘word’ has its origin in the British parliamentary exercise of preparing such statement way back in the mid-18th century from the French word ‘Bugeut’ meaning a leather bag out of which the financial statement was brought out and presented in the parliament.
  • Today, this word is used to mean the annual statement in all economies around the world.
  • The Constitution of India has a provision (Art. 112) for such a document called Annual Financial Statement to be presented in the Parliament before the commencement of every new fiscal year—popular as the Union Budget. Same provision is there for the states, too.

Source: TMH Ramesh Singh