Question

what is budget and types of budget with explanation of each type of it?​

Answer 1

Answer:

5. Types of budget: It may be of two types:

(a) Balanced Budget (b) Unbalanced Budget

Let us discuss them in detail:

(a) Balanced Budget: If the government revenue is just equal to the government expenditure made by the general government, then it is known as balanced budget.

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(b) Unbalanced Budget: If the government expenditure is either more or less than a government receipts, the budget is known as Unbalanced budget.

It may be of two types:

(i) Surplus budget (ii) Deficit budget

Let us discuss them in detail:

(i) Surplus Budget: If the revenue received by the general government is more in comparison to expenditure, it is known as surplus budget.

In other words, surplus budget implies a situation where government income is in excess of government expenditure.

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(ii) Deficit Budget: If the expenditure made by the general government is more than the revenue received, then it is known as deficit budget.

In other words, in deficit budget, government expenditure is in excess of government income.