ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue is greater than expenses
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Revenue is less than expenses
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Revenue is equal to expenses
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Expenses is greater than revenue
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Detailed explanation-1: -If the budget receipts are more than the budget expenditure, then the budget is termed as a surplus budget.
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: -When revenues exceed expenses there is a budget surplus; when expenses exceed revenues there is a budget deficit. While neither of these is a technically balanced budget, deficits tend to elicit more concern. The term “budget surplus” is often used in conjunction with a balanced budget.
Detailed explanation-4: -In the budget, if the government’s expenditure is more than its revenue receipts and non-debt capital receipts, it is called ‘fiscal deficit’.