Question

Give any one demerit of unbalanced budget.

Give demerits of unbalanced budget.

Answer 1

1. A budget deficit could have a negative impact on currency exchange rates.
2. It encourages wasteful expenditures.
3. A deficit budget lowers the government's cash reserves and increases public debt. It will cause disruptions to the country's economy.
4. It renders the government careless; it spends extravagantly and recklessly.