Question

Define or explain the concept of deficit budget.

Explain the concept of budget deficit.

Answer 1

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

Answer 2

Budget deficit means an excess of total expenditure over total receipts of the Government. It can be expressed as BD = BE or TE − BR when TE > TR.