When does a budget deficit occur?
When expenditure is more than available revenue of the government
When expenditure is more than available revenue of the government is correct.
A budget deficit is the gap that arises when a government's total expenditure in a year exceeds the revenue it has available (tax and non-tax receipts). The shortfall is usually met by borrowing.
If expenditure equals revenue the budget is balanced, and if expenditure is less than revenue the government runs a surplus. Neither of these is a deficit.
Similar Questions
If monetary policy is related to the management of interest rates and the supply of money, then what is fiscal policy related to?
Read the following about the Revenue expenditure.
A. Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government.
B. It relates to those expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties (even though some of the grants may be meant for creation of assets).
Identify the INCORRECT statement/statements.
If a country has a budget deficit, and this situation persists for a long time, what will be its result?
Which Indian has the honour of presenting the budget for the Government of India 10 times?
In which year was the Railway Budget merged with the Union Budget after remaining separate for 92 years?
Important Questions from Budget
The first Economic Survey of India was presented in ______.
As announced in the Union Budget of FY 2022, how many pilot projects are to be set up for coal gasification?
What is the approximate amount to be mobilised for the National Highways Network expansion as per the Union Budget 2022-23?
Which of the following budget was primarily focused on the I.T sector and promoting India as a major software hub?
What name did the Delhi government give to the annual financial statement "Budget" in the year 2021?
