ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets in a particular year. Governments and businesses sometimes run deficits deliberately, to stimulate an economy during a recession or to foster future growth.

Detailed explanation-2: -Excess of income over Expenditure is termed as surplus.

Detailed explanation-3: -Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus.

Detailed explanation-4: -Surplus and Deficit Balance of an Income and Expenditure Account. When the revenue generated by a non-trading or non-profitable organization exceeds the total expenditure incurred in a financial year, the Income & Expenditure account shows a surplus balance. It is usually termed as excess income over expenditure.

Detailed explanation-5: -A budget deficit occurs when expenses (expenditures) exceed income (revenue). A Budget surplus is the opposite of a budget deficit, this occurs when revenue exceeds expenses.