Question

Match the following.

• A. Deficit budget
• B. Balanced budget
• C. Surplus budget

Answer 1

Depending on the level of expenditure and income, there are three types of budget:
1. If all expenditures and revenues are so prudently planned that they match each other, it is called a balanced budget.
2. If the total revenue is more than the total expenditure, it is called a surplus budget.
3. If the total expenditure is more than the total revenue, it is called a deficit budget.