Correct option is C
The Annual Financial Statement (AFS), as outlined in Article 112 of the Constitution of India, provides a comprehensive account of the estimated revenue and expenditure of the government for a financial year. It is commonly referred to as the Union Budget in India.
Key Features:
- Details: The AFS includes information about revenue receipts (tax and non-tax revenues), capital receipts (loans, recoveries, etc.), and expenditures (on various government schemes, debt servicing, etc.).
- Divisions: It is divided into three parts:
- Consolidated Fund of India
- Contingency Fund of India
- Public Account of India
- Purpose: The AFS is presented by the Finance Minister in Parliament at the start of each financial year.
Additional Information:
- The AFS serves as a policy document outlining the government's fiscal priorities and allocation strategies.
- It is accompanied by several other documents, such as the Finance Bill, Demand for Grants, and the Fiscal Policy Strategy Statement.
Other Options:
- Income statement: Incorrect. This term is used in corporate accounting to show profit or loss, not for government finances.
- Balance sheet: Incorrect. A balance sheet reflects an entity's financial position (assets and liabilities), not its revenue and expenditure.
- Balance of payments: Incorrect. This relates to a country’s international transactions, including trade, capital flows, and foreign exchange reserves.
