Question

Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2000 crores.

The amount of budget deficit was -Rs 1500 crores???​

Answer 1

hey friend❤❤

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Budget deficit:-

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-------->It is measures the amount by which the government expenditure exceeds the tax revenue earned by it.

Budget Deficit = G – T.

Trade deficit:-

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It is measures the amount of excess expenditure over the export revenue earned by the country.

▪Trade Deficit = M – X

▪Given G – T = - Rs 1500 crore

▪Investment – Saving = Rs 2000 crore ▪Trade deficit = [I – S] + [G – T]

▪= [2000]+ [-1500]

▪= Rs 500 crore.

hope help u!!

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Answer 2

Answer:

budget deficit is a financial loss for during a period where expenses exceed revenues. This concept is often used in business but more commonly used to refer to governmental spending in excess of revenues collected.