Question

Budget Deficit means ________.

• A. difference between total income and total expenditure
• B. difference between total receipt on capital account total expenditure on capital account
• C. difference between total revenue and total expenditure
• D. difference between actual tax collection and projected tax collection

Answer 1

The correct option is C difference between total revenue and total expenditure

A budget is nothing but the financial plan for a definite period of time mostly for one year. 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. It shows the financial health of the economy. Hence, budge deficit means difference between total revenue and total expenditure.