Answer 1

There are three main types of government budgets.

1. Balanced budget - When the estimated revenue and expenditure of the government are equal, the budget is said to be a balanced budget.
   Balanced budget = Government Receipts = Government Expenditure
2. Surplus budget - When estimated government receipts are more than the estimated government expenditure, the budget is said to be a surplus budget.
   Surplus budget = Estimated Government Receipts > Estimated Government Expenditure
3. Deficit budget - When estimated government receipts are less than the estimated government expenditure, the budget is said to be a deficit budget.
   Deficit budget = Estimated Government Receipts < Estimated Government expenditure