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Which of the following budget is suitable for developing economies?
Deficit Budget
Balanced Budget
Surplus Budget
None of these
- Deficit Budget: This is when a government spends more money than it earns in revenue. Developing economies often use deficit budgets to fund infrastructure, social programs, and economic development to spur growth.
Correct Answer: Deficit Budget
- Balanced Budget: This occurs when total revenues are equal to total expenditures. It ensures financial stability but may limit economic growth as it doesn't allow for flexibility to spend on development needed in many developing economies.
- Surplus Budget: This is when a government's income exceeds its expenditures. While this could be a sign of a healthy economy, in developing countries, it might indicate under-investment in critical areas.
- None of these: This would imply that none of the stated budgets fit the needs of developing economies, which is generally not the case.
By: santosh ProfileResourcesReport error
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