Question

In the budget, when the government's revenue is more than its expenditure it is called __________.

• A. deficit budget
• B. surplus budget
• C. balanced budget
• D. imbalanced budget

Answer 1

Answer: (B)

surplus budget

A budget surplus is a period when income or receipts exceed outlays or expenditures. A budget surplus often refers to the financial states of governments; individuals prefer to use the term 'savings' instead of the term 'budget surplus.' A surplus is an indication that the government is being effectively managed.