When government spends more than it collects by way of revenue it incurs ........

When government spends more than it collects by way of revenue, it incurs ______

Budget surplus

Budget deficit

Capital expenditure

Revenue expenditure

- Budget Surplus:

- This occurs when the government's revenue collection exceeds its expenditures.

- It indicates a positive financial balance.

- Budget Deficit:

- This occurs when the government spends more than it collects in revenue.

- It indicates a negative financial balance and may require borrowing to cover the gap.

- Capital Expenditure:

- Refers to funds used by the government to purchase, upgrade, or maintain physical assets like infrastructure.

- It is related to long-term investments.

- Revenue Expenditure:

- Involves spending on the day-to-day running of government services.

- It includes expenses like salaries and utilities.

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