Chapter 5 - Government Budget

Chapter 6 Part 1 - Foreign Exchange Rates →
Economics Class 12
Macroeconomics

Balanced, Surplus and Deficit Budget

Last updated at April 16, 2024 by

We know that in Budget we have Receipts and Expenditure

 

If Receipts are equal to Expenditure, it is Balanced Budget

 

If Receipts are More than Expenditure, it is Surplus Budget

 

If Receipts are less than expenditure, it is a Deficit Budget

 

Hence, we can say that Budget is of 3 types:

1. Balanced Budget

2. Surplus Budget

3. Deficit Budget

Different Types of Budget - Teachoo.JPG

What is Balanced Budget - Teachoo.JPG

What is Surplus Budget - Teachoo.JPG

What is Deficit Budget - Teachoo.JPG

NCERT Questions

No questions in this part

Other Books

Question 1

In the following questions, select the correct answers:

If estimated government receipts are more than government expenditure, it is said to be a:

  1. Surplus Budget
  2. Deficit Budget
  3. Balanced Budget
  4. None of these
View Answer

Oswaal Questions

Question 1

Match the items in column A to those in column B and choose the correct option:

Column A  Column B  
1. Balanced Budget  (a) Total Anticipated  Expenditure = Total Anticipated Revenue.  
2. Surplus Budget  (b) Total Expenditure < Total Revenue  
3. Capital Budget  (c) Capital receipts + Capital expenditure 
4. Deficit Budget  (d) Total Expenditure = Total Revenue  
  1. 1 (a)
  2. 2 (b)
  3. 3 (c)
  4. 4 (d)
View Answer
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Transcript

Different Types of Budget Balanced Budget  RECEIPTS 1000 PAYMENTS 1000 SURPLUS 0 Surplus Budget  RECEIPTS 1000 PAYMENTS 800 SURPLUS 200 Deficit Budget  RECEIPTS 1000 PAYMENTS 1100 SURPLUS 0 DEFICIT 100 What is Balanced Budget RECEIPTS 1000 PAYMENTS 1000 SURPLUS 0 If Govt Receipts are equal to Govt Expenditure it is called Balanced Budget In this case., Govt spends exactly equal to Money it collects It is Rare Case What is Surplus Budget RECEIPTS 1000 PAYMENTS 800 SURPLUS 200 If Govt Receipts are more than Govt Expenditure it is called Surplus Budget Here, Govt spends less than Money it collects It is also Rare Case What is Deficit Budget RECEIPTS 1000 PAYMENTS 1100 SURPLUS 0 DEFICIT 100 If Govt Receipts are less than Govt Expenditure it is called Deficit Budget Here, Govt spends more than it collects It is most common case

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo