Question

Which among the following is a type of government budget?

• A. Balanced budget
• B. Unbalanced budget
• C. Family budget
• D. Both A & B

Answer 1

The correct option is D Both A & B

There are two types of budget in general.

1. Balanced Budget: In this type of budget, government expenditure is equal to government revenue.

2. Unbalanced budget: In this type of budget, government expenditure is not equal to government revenue.

(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.