When tax collection exceeds the required expenditure, the budget is said to be in ______
This questions was previously asked in
SSC MTS 14th July 2022 Shift-2
economic spread
Incorrect AnswerExplanation:
- A budget deficit occurs when a government spends more money than it collects in taxes. This leads to borrowing to cover the shortfall.
- A budget surplus happens when tax collection surpasses the required government expenditure. This often allows for savings, debt reduction, or increased spending in other areas.
Correct Answer: Option 2, surplus
- Economic spread is not a standard term used in budgeting contexts, thus not relevant here.
- A budget is in balance when expenditures equal tax collections. No surplus or deficit exists in this scenario.
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By: santosh