Question

When the estimated government receipts are less than the estimated government expenditure, the budget is termed as ___________ budget.

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

Answer 1

Answer: (B)

deficit

Deficit budget is the type of budget where the estimated government expenditure is greater than the estimated government revenue due to which there is a deficit in the budget. Deficit budget is usually regarded as a negative indicator for the economy.