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Which of the following are the 6 accounts that have a role in the economic classification of the budget?
Accounts A to F: Transaction in goods, services, and capital
Accounts I to VI: Transaction in commodities, revenue, and capital
Accounts X to XV: Transaction in current and capital assets
Accounts 1 to 6: Transaction in commodities and services and transfers
Accounts I to VI: Transaction in commodities, revenue, and capital
The economic classification of the Union Budget in India organizes government expenditure into six accounts (I to VI) based on the nature of transactions. These accounts categorize spending into transactions in commodities and services, transfer payments, and capital transactions to reflect the impact of the budget on the economy.
The economic classification of the Union Budget in India organizes government expenditure into six accounts (I to VI) based on the nature of transactions. These accounts categorize spending into transactions in commodities and services, transfer payments, and capital transactions to reflect the impact of the budget on the economy.
The Economic Classification of the Union Budget is prepared by the Ministry of Finance, Government of India, following the methodology derived from the UN System of National Accounts (SNA).
The 6-account system categorizes expenditure by its impact on the national income.
Accounts I to III deal with current revenue and expenditure flows.
Accounts IV to VI focus on capital formation and changes in financial assets.
Account I tracks transactions in commodities and services (consumption).
Account II tracks current transfers (grants, interest payments).
Account III reflects the net consumption of the government.
The official answer is B, which correctly maps the classification to commodities, revenue, and capital components.
B is correct тАФ The economic classification of the budget utilizes Accounts I to VI to categorize government transactions in commodities, revenue, and capital.
Understanding these accounts helps in grasping the 'Economic Survey' content, which often uses this classification to explain how government spending drives GDP through capital formation versus current consumption.
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