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: -Answer: If the budget receipts are more than the budget expenditure, then the budget is termed as a surplus budget.

Detailed explanation-3: -A budget surplus is when the government’s earnings are more than the spending. On the other hand, in a budget deficit, government spending is more than its income. It may happen when the government collects fewer taxes or starts spending more.

Detailed explanation-4: -A budget surplus is when extra money is left over in a budget after expenses are paid. A budget deficit occurs when the federal government spends more money that it collects in revenue. A budget surplus is more beneficial to a government. How does the federal budget reflect U.S. economic goals?

Detailed explanation-5: -A country will prefer surplus budget because the surplus can be used to repay outstanding loans or liabilities. A country does not prefer deficit budget, as it affects economic growth and development.