Estimated income and plane for expenditure is called Budget. What is Budget deficit ?
Correct answer: C. More public spending than amount of revenue
- A. Less Public spending than amount of revenue corporation
- B. Balance between public spending and amount of revenue
- C. More public spending than amount of revenue
- D. None of them
Explanation
A budget deficit occurs when the government’s public expenditure exceeds its revenue during a period. If revenue exceeds spending, the budget has a surplus instead.
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About Public Finance
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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