General Studies · Types of Budgeting
Which of the following statements does NOT accurately describe the characteristics, advantages, or limitations of a 'Line-Item Budget'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is easy to prepare and understand, which simplifies auditing, but it lacks flexibility and may not reflect changing priorities.
- 2It focuses primarily on how much money is spent and on what specific items, rather than on the outcomes or qualitative results achieved.
- 3It evaluates the overall effectiveness of government programmes by providing comprehensive information about the performance and efficiency of different activities.✓
- 4It emphasises financial control by specifying limits for each item of expenditure, ensuring funds are spent only for sanctioned purposes.
Correct answer
It evaluates the overall effectiveness of government programmes by providing comprehensive information about the performance and efficiency of different activities.
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