Question

Public revenue always exceed public expenditure.

• A. True
• B. False

Answer 1

The correct option is B False

Most of the budgets are deficit in nature i.e. estimated receipts are less than expenditure. In modern economy, most of the budgets are of this nature.

Every nation strives for a surplus budget but it is difficult for a country to achieve. Hence, nations strive for balanced budget to avoid inflation, unemployment and other loss consequences.