Explain the three types of Budget.
Answers
Answer:
Depending on the feasibility of these estimates, budgets are of three types -- balanced budget, surplus budget and deficit budget. A government budget is said to be a balanced budget if the estimated government expenditure is equal to expected government receipts in a particular financial year.
Answer:
Budget are of two types:
(i) balanced budget
(ii) surplus budget
(iii) deficit budget
Explanation:
(I) Balanced budget=>
A government budget is known as balanced budget if the estimated government expenditure is equal to expected government receipts in a particular financial year.
(ii) surplus budget=>
A budget surplus often refers to the financial states of governments; individuals prefer to use the term 'savings' instead of the term 'budget surplus. ' A surplus is an indication that the government is being effectively managed.
(iii) Deficit budget=>
The government generally uses the term budget deficit when referring to spending rather than businesses or individuals. Accrued deficits form national debt.