ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget surplus is when income or revenue exceeds expenditures. Governments and companies with surpluses have additional money that can be reinvested or used to pay off debts. The opposite of a surplus is a deficit, which occurs when spending exceeds revenues.

Detailed explanation-2: -Budget deficits occur when expenses exceed revenue and for a nation, they can lead to economic instability, such as inflation. Using fiscal policy to promote economic growth to increase tax revenue and decrease spending can decrease a deficit.

Detailed explanation-3: -A deficit budget is said to have occurred when expenses exceeds the revenue and it is a symptom of financial health. The government normally uses this term to its spending instead of entities or individuals. Accrued government deficits form the national debt.

Detailed explanation-4: -When the revenue is more than the expenditure it is called as surplus budget whereas when the expenditure is more than the revenue it is called as deficit budget.