Question

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.

• A. Country A and Country B have surplus budget.
• B. Country A and Country C have deficit budget.
• C. Country B has surplus budget.
• D. Country B and Country C have balanced budget.

Answer 1

Answer: (B), (C)

Country B has surplus budget.

Budget is a statement that shows the expected receipts and expenditures of the government for the next financial year.
There are three types of budget:
1. Balanced budget: Expenditure is equal to receipts
2. Surplus budget: Expenditure is less than receipts
3. Deficit budget: Expenditure is greater than receipts