If the Pakistani government runs a budget surplus there is ?
Correct answer: A. an excess of government receipts over government spending.
- A. an excess of government receipts over government spending.
- B. an equality of government spending and receipts.
- C. a surplus of government workers.
- D. an excess of government spending over government receipts.
Explanation
A budget surplus occurs when government receipts, mainly taxes and other revenues, exceed government spending. The reverse situation is a budget deficit.
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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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