ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget is nothing but the financial plan for a definite period of time mostly for one year. 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.

Detailed explanation-2: -If the government spends more than it collects in revenue, then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus.

Detailed explanation-3: -A budget surplus is when a body (such as the U.S. government) spends less money during an accounting period than it takes in through revenue. A deficit is when spending is higher than revenue, requiring the government to borrow money in order to finance its activities.

Detailed explanation-4: -Fiscal deficit is the difference between the total revenue and total expenditure of a government in a financial year. Fiscal deficit arises when the expenditure of a government is more than the revenue generated by the government in a given fiscal year.

Detailed explanation-5: -A revenue deficit occurs when realized net income is less than the projected net income. This happens when the actual amount of revenue and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditures.