A budgetary deficit means ?
Correct answer: A. Total expenditure is more than total revenue
- A. Total expenditure is more than total revenue
- B. Current expenditure is more than current revenue
- C. Capital expenditure is more than capital revenue
- D. Total expenditure is more than current revenue
Explanation
A budgetary deficit occurs when the government's total expenditure exceeds its total revenue during a given period. The comparison is between overall totals, not only current or capital items.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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