Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.
Chapter 8 : Public Finance in India
Q.6. Write answers in ‘one’ or ‘two’ paras each :
1. Explain the types of Government budget.
Answer: -
There are three main types of the government budgets.
Balanced budget- It means the total budgeted expenditure is equal to the total budgeted receipts. In other words, a balanced budget implies a situation where the total budget receipts of the government equals the total budget expenditure of the government. That is,
Balanced budget = Government expenditure = Government revenue
Surplus budget- It refers to the excess of the total budgeted receipts over the total budgeted expenditure. In other words, budget surplus implies a situation where the total budget receipts of the government are more than the total budget expenditure of the government. That is,
Surplus budget = Government expenditure < Government revenue
Deficit budget- It refers to the excess of the total budgeted expenditure over the total budgeted receipts. In other words, budget deficit implies a situation where the total budget receipts of the government fall short of the total budget expenditure of the government. That is,
Deficit budget = Government expenditure > Government revenue
