Deficit budgets are better suited for developing economies. Whenever there is a recession, a deficit budget will help in generating employment and boost the economy. If there is a surplus budget then it could indicate that the country is economically highly developed. You can read about the Union Budget 2021-22 Summary in the given link.
A balanced budget is not suitable when there is economic downturn or when there is recession. It indicates reduced expenditure on public welfare schemes and it will not help in addressing the problems of unemployment.
- Taxation in India – Direct taxes & Indirect Taxes, Features of Taxation System
- Revenue Receipts- Tax Revenue and Non-Tax Revenue