Q.Fill in the blank using appropriate alternatives given in the brackets:
When the government's revenue exceeds government's expenditure, it is known as _______ budget.

Budget where estimated revenue = estimated expenditure = Balanced budget.

A balanced budget is one in which the government's estimated revenue (receipts) and estimated expenditure for a financial year are equal. There is neither a surplus nor a deficit.

…

The missing term is Deficit Budget.

The government uses its budget to stabilise the economy. During inflation (excess demand), a surplus budget — where revenue exceeds expenditure — is used to withdraw purchasing power and cool demand. During a depression (deficient demand and unemployment), a deficit budget — where expenditure exceeds revenue — is used to pump purchasing power into the economy a …

The odd word out is Zero budget. Balanced, surplus and deficit budgets are the three types classified by the relation between government receipts and expenditure; a zero-based budget is a method of budget preparation. Odd one: Zero budget.

Why: A government budget is classified according to whether estimated receipts equal, exceed or fall short of estimated expenditure:

• Balanced budget — receipts equal expenditure.
• Surplus budget — receipts exceed expenditure.
• Deficit budget — expenditure exceeds receipts. …

The correct option is Revenue budget — the part of the government budget that records revenue receipts and revenue expenditure.

The government budget is divided into two parts:

The correct alternative is surplus.

A budget is balanced when revenue = expenditure, in deficit when expenditure exceeds revenue, and in surplus when revenue exceeds expenditure. Since the statement says government revenue exceeds government expenditure, it is a surplus budget. Governmen …