Answer in Brief
Write the answers in ‘one’ or ‘two’ paras each:
Explain the types of Government budget.
There are three main types of government budgets.
- 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
- 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
- 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
Concept: Structure of Public Finance - Financial Administration
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