What is the definition of a government budget?

A.
a forecast of government spending and revenue for the following financial year
B.
an account of government taxation revenues for the current financial year
C.
an estimate of government capital spending for the current financial year
D.
an explanation of government spending for the following financial year
Economics
IGCSE&ALevel
CAIE
Exam No:0455_m25_qp_12 Year:2025 Question No:17

Answer:

A

Knowledge points:

4.3.1 definition of the government budget
4.3.2 reasons for government spending (The main areas of government spending and the reasons for and effects of spending in these areas.)
4.3.3 reasons for taxation (Taxation as the main source of government revenue and the reasons for levying taxation.)
4.3.4 classification of taxes (Examples of the different classifications of tax; progressive, regressive, proportional; and direct, indirect.)
4.3.5 principles of taxation
4.3.6 impact of taxation (The impact of taxation on consumers, producers, government and economy as a whole.)
4.3.7 definition of fiscal policy
4.3.8 fiscal policy measures (The tax and spending changes, in the form of fiscal policy, that cause budget balance or imbalance. Including calculations of the size of a budget deficit or surplus.)
4.3.9 effects of fiscal policy on government macroeconomic aims (How fiscal policy measures may enable the government to achieve its macroeconomic aims. Note: aggregate demand and aggregate supply are not required.)

Solution:

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