Types of Budget

Q.

How does the government budget affect the economy?

Q.

What are the three types of government budgets?

Q.

What are the components of budget expenditure?

Q.

Who uses fiscal policy?

Q. Choose the correct option.

Statement I: A country is said to have a surplus budget if its total expenditure is more than its total revenue.

Statement II: A country is said to have a balanced budget if its total expenditure is less than its total revenue.

1. Both of the statements are correct.
2. Both of the statements are incorrect.
3. Statement I is correct, but Statement II is incorrect.
4. Statement I is incorrect, but Statement II is correct.

Q. Given below are the revenues and expenditures of a few countries.

	Revenue (in million)	Expenditure (in million)
Country A	$250	$400
Country B	$700	$650
Country C	$300	$900

Analyse the data and select the correct option with regard to the budget of the countries mentioned.

1. Country A and Country B have surplus budget.
2. Country A and Country C have deficit budget.
3. Country B has surplus budget.
4. Country B and Country C have balanced budget.

Q. Identify the condition for a surplus budget.

1. Revenue < Expenditure
2. Revenue > Expenditure
3. Revenue = Expenditure
4. Revenue – Expenditure = 0

Q. Match the following.

1. Deficit budget
2. Balanced budget
3. Surplus budget