ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -BusinessFinanceThe amount by which actual spending exceeds planned spending is called a surplus, and the amount by which actual spending is less than planned spending is called a deficit.

Detailed explanation-2: -A budget variance is an accounting term that describes instances where actual costs are either higher or lower than the standard or projected costs. An unfavorable, or negative, budget variance is indicative of a budget shortfall, which may occur because revenues miss or costs come in higher than anticipated.

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: -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-5: -" The opposite of a budget deficit is a budget surplus, and when inflows are equal to outflows, the budget is said to be balanced. Deficit financing means generating funds to finance the deficit which results from excess of expenditure over revenue.