Question

The budget under which the government may spend an amount equal to the revenue it collects is referred as ______ Budget.

Options

• Surplus

• Deficit

• Balanced

• Deflationary

Answer 1

The budget under which the government may spend an amount equal to the revenue it collects is referred as Balanced Budget.

Explanation:

A balanced budget means that the government spends the same amount of money as it brings in. This means that the government spends the same amount of money that it brings in, so there is neither a surplus nor a deficit.

• Surplus Budget: It occurs when the government collects more revenue than it spends.
• Deficit Budget: It occurs when the government spends more than it collects in revenue.
• Deflationary Budget: A budget strategy that aims to slow down the economy, usually by cutting spending or raising taxes.