ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This means that the government’s earnings from taxes levied are greater than the amount the government spends on public welfare.

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: -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-4: -Deficit spending is when a government spends more than the revenue it collects during a certain period. Fiscal deficits occur when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowing.

Detailed explanation-5: -Budget surplus occurs when the government’s earning through tax revenues is more than its spending in the current quarter or year.