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Question
Explain the types of a government budget.
Solution
There are three types of a government budget. These are as follows.
- Balanced budget: A balanced budget refers to the budget when the total budget expenditure is equal to the total budget receipts. That is,
Balanced budget = Total budget revenue – Total budget expenditure = 0 - Surplus budget: Surplus budget refers to the excess of government revenue over the expenditure. In other words, when the government revenue is greater than its expenditure, it is called a surplus budget. That is,
Surplus budget = Government revenue – Government expenditure - Deficit budget: Deficit budget refers to the excess of the total budgeted expenditure over the total budgeted receipts. In other words, budget deficit implies a situation where the total budget receipts of the government fall short of the total budget expenditure of the government. That is, Deficit budget = Government expenditure > Government revenue
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Features of Government Budget
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RELATED QUESTIONS
During depression _____________ budget is preferable. (balanced/surplus deficit/zero)
Distinguish between the following
Revenue budget and Capital budget.
Write explanatory note.
Components of Government budget.
State with reason whether you agree or disagree with the following statement.
When government expenditure is greater than government revenue, it is called Surplus Budget.
