ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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. Hence, when government expenditure is greater than receipts to the government it is called deficit budgeting.

Detailed explanation-2: -If the budget receipts are less than the budget expenditure, then the budget is termed as a deficit budget. The above-mentioned is the concept that is explained in detail about balanced, surplus, and deficit budget for Class 12 students.

Detailed explanation-3: -The fiscal deficit is the difference between the total revenue and total expenditure of the government. Revenue deficit hence arises when the government’s actual net receipts is lower than the projected receipts. So, the size of fiscal deficit is always higher than revenue deficit.

Detailed explanation-4: -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-5: -The revenue revenue deficit is calculated by subtracting total revenue expenditure from total revenue receipts. If the fiscal deficit is constant, a higher revenue deficit means the government or business bears a higher load of repayment.