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Questions
Give any one demerit of unbalanced budget.
Give demerits of unbalanced budget.
Short Answer
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Solution
- A budget deficit could have a negative impact on currency exchange rates.
- It encourages wasteful expenditures.
- A deficit budget lowers the government's cash reserves and increases public debt. It will cause disruptions to the country's economy.
- It renders the government careless; it spends extravagantly and recklessly.
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Notes
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