Q. Consider the following statements regarding government budgets:
1.A balanced budget is when government expenditure is equal to its revenue.
2.A budget surplus occurs when government revenue falls short of its expenditure.
3.A budget deficit is a situation where government expenditure exceeds its revenue.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation:
- A balanced budget means government expenditure equals revenue.
- A budget surplus means revenue is more than expenditure, not less.
- A budget deficit occurs when expenditure exceeds
Source: Indian Economy (NCERT)
