Question

When government revenue exceeds government expenditure, it is known as _______ budget.

• A. surplus
• B. balanced
• C. deficit
• D. zero

Answer 1

The correct option is A surplus

A budget is nothing but the financial plan for a definite period of time mostly for one year. When the revenue is more than the expenditure it is called as surplus budget whereas when the expenditure is more than the revenue it is called as deficit budget. Hence, when government revenue exceeds government expenditure, it is known as surplus budget.