Question

Our economy improves when expenditure exceeds income true but false​

Answer 1

Answer:

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. Advocated by many classical economists, this type of budget is based on the principle of “living within means.” They believed the government’s expenditure should not exceed their revenue.

Though an ideal approach to achieve a balanced economy and maintain fiscal discipline, a balanced budget does not ensure financial stability a ..

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https://economictimes.indiatimes.com/budget-faqs/what-are-the-three-types-of-government-budgets/articleshow/67466774.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Explanation:

Answer 2

Our economy improves when expenditure exceeds income true but false​

• When revenue surpasses spending, there is a budget surplus. Since people have "savings" rather than a "budget surplus," the phrase is frequently used to describe the financial situation of a government. A government's ability to handle its finances properly is demonstrated by a surplus.
• A budget excess could be put to use for a purchase, debt repayment, or retirement planning. If a community has a budget surplus, it might utilise that money to make renovations, such reviving a run-down park or downtown.

• There is a budget imbalance when expenses go over income. When there is a deficit, money is borrowed and interest is paid, much like when someone uses their credit card more than they make and pays interest on the debt. When expenses and revenues are equal, a budget is balanced.
• Although having money left over after spending can indicate that you were being frugal, having a surplus is not always a good thing and sometimes has its own issues. Most nations could achieve a budget surplus by raising tax receipts, but the negative economic effects of doing so might make having a budget surplus less valuable.

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