ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government revenue is less than government spending
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government revenue exceeds government expenditure
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spending on imports exceeds export earnings
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spending on imports is less than export earnings.
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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 revenue exceeds government expenditure, it is known as surplus budget.
Detailed explanation-2: -A budget surplus is a situation in which income exceeds expenditures.
Detailed explanation-3: -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-4: -What is a budget surplus and a budget deficit? 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.