ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the money left over after all expenses are paid
|
|
|
the difference between income and expenses
|
|
|
expenses owed every month
|
|
|
not having enough money to cover expenses
|
Detailed explanation-1: -A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit.
Detailed explanation-2: -Ans Option A – Fiscal Deficit Fiscal Deficit = Total Expenditure – Total revenue excluding the borrowings.
Detailed explanation-3: -A budget deficit occurs when a government spends more in a given year than it collects in revenues, such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year, and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.
Detailed explanation-4: -A deficit in the budget can be financed by using savings or existing assets, or by incurring debt.