Government Budgeting and State Accounting Framework

The national budget is a program that guides activities related to collections and expenditures. True or False?

The national budget is the framework of the accounts by which transactions affecting collections and expenditures are recorded. True or False?

Government budgeting and state accounting are not closely linked. True or False?

The budget does not dictate how transactions should be recorded in the accounting system. True or False?

Accountability reports from the accounting system are not important for monitoring performance in the budget execution phase. True or False?

Annual Budget is a type of budget that covers a period longer than one year. True or False?

The national budget is based on what the government anticipates spending and the sources of funds it hopes to have, including revenues and borrowings.

The national budget includes allocations for implementing various programs and projects, operating government offices, paying government employees' salaries, and settling public debts.

Capital outlays in the national budget refer to expenses that are limited to the current budget year, such as salaries and maintenance costs.

Net Lending in the national budget includes net advances by the government for servicing corporate debt, loans to government corporations, and debt amortization.

Debt amortization in the national budget refers to contributions to the sinking fund used for interest payments on loans.

The national budget may affect the country's economy and society through its allocation of funds for different purposes such as programs, salaries, and debt payments.

During economic booms, the government increases its spending to stimulate demand for goods and create more job opportunities.

The national budget primarily serves as a tool for redistributing the country's financial resources.

Expenditures may decrease if the government intends to raise the country's level of development.

The national budget does not play any role in stabilizing the economy during recessions.

Government programs targeted for the poor are not supported by the national budget.

During economic booms, the government maintains a conservative budget stance to avoid overheating the economy.