ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government spending exceeds government revenue.
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government spending equals government revenue.
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government spending is less than government revenue.
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export revenue is more than import expenditure.
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Detailed explanation-1: -Budget surplus occurs when the government’s earning through tax revenues is more than its spending in the current quarter or year.
Detailed explanation-2: -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-3: -Understanding the National Deficit 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: -2 When is a budget said to be a surplus budget’? Answer: If the budget receipts are more than the budget expenditure, then the budget is termed as a surplus budget.
Detailed explanation-5: -A balanced budget is when the government spends an amount equal to the amount it collects in taxes. A budget deficit is when the government spends more than it collects in taxes. A budget surplus is when the government collects more in taxes than it spends.