Question

The budget which has gaps between the government revenue and public expenditure is termed as the ___________ budget.

• A. balanced
• B. unbalanced
• C. constant
• D. none of the above

Answer 1

The correct option is B unbalanced

Unbalanced budget is the type of budget where government expenditure is not equal to government revenue. These includes

(i) Surplus Budget: In this type of budget, government revenue is greater than government expenditure due to which there is a surplus in the budget.

(ii) Deficit budget: In this type of budget, government expenditure is greater than government revenue due to which there is a deficit in the budget.