Question

The excess of government expenditure over government income is termed as ______

Options

• Budget deficit

• Trade deficit

• Both Budget deficit and Trade deficit

• None of the above

Answer 1

The excess of government expenditure over government income is termed a Budget deficit 

Explanation:

Deficit Budget Budget deficit refers to the difference between government spending and revenue.

Budget Deficit = G − T

Where G stands for government spending.

T stands for government revenue.