ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -A budget deficit occurs when expenses exceed revenue and can indicate the financial health of a country.
Detailed explanation-2: -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-3: -If the government spends more than it collects in revenue, then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus. In fiscal year (FY) 2022, the government spent $6.27 trillion, which was more than it collected (revenue), resulting in a deficit.
Detailed explanation-4: -A revenue deficit means a difference between net revenue receipt and net revenue expenditure. Contrarily, a fiscal deficit implies a difference between actual and budgeted income.