Question

In a surplus budget _________.

• A. receipts $>$ expenditure
• B. expenditure $>$ receipts
• C. budgetary deficit $=$ fiscal deficit
• D. none of the above

Answer 1

The correct option is A receipts $>$ expenditure

A budget is a financial plan for a definite period of time mostly for one year. It is basically of three types.viz. balanced, surplus and deficit. A budget is said to be surplus when the receipts exceeds the expenditure. Hence, in a surplus budget, receipts > expenditure.