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Consider the following statements.
1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget
2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budget
Which of these statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both of them
- d)None of them
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. 1. When the budgetary proposals of...
Deficit Budget vs Surplus Budget:
Deficit Budget:
- A deficit budget refers to a situation where the government's proposed expenditures for a particular year exceed its receipts or revenues.
- In other words, the government plans to spend more money than it expects to collect in the form of taxes, fees, and other sources of revenue.
- This results in a budget deficit, which is the amount by which the government's expenditures exceed its receipts.
- A deficit budget implies that the government will need to borrow money or use other means to finance its spending.
Surplus Budget:
- On the other hand, a surplus budget occurs when the government's proposed expenditures are lower than its receipts.
- In this case, the government plans to spend less money than it expects to collect in revenues.
- As a result, there is a budget surplus, which is the amount by which the government's receipts exceed its expenditures.
- A surplus budget allows the government to either save the excess funds or use them to pay off existing debts.
Correct Statements:
- Statement 1: When the budgetary proposals of a government for a particular year propose higher expenditures than the receipts, it is known as a deficit budget. This statement is correct as it accurately defines a deficit budget.
- Statement 2: If the budget proposes lesser expenditures than the receipts, then it is a surplus budget. This statement is also correct as it accurately defines a surplus budget.
Conclusion:
- Both statements 1 and 2 are correct, as they correctly describe the concepts of deficit and surplus budgets. A deficit budget occurs when expenditures exceed receipts, while a surplus budget occurs when expenditures are lower than receipts.
Deficit Budget:
- A deficit budget refers to a situation where the government's proposed expenditures for a particular year exceed its receipts or revenues.
- In other words, the government plans to spend more money than it expects to collect in the form of taxes, fees, and other sources of revenue.
- This results in a budget deficit, which is the amount by which the government's expenditures exceed its receipts.
- A deficit budget implies that the government will need to borrow money or use other means to finance its spending.
Surplus Budget:
- On the other hand, a surplus budget occurs when the government's proposed expenditures are lower than its receipts.
- In this case, the government plans to spend less money than it expects to collect in revenues.
- As a result, there is a budget surplus, which is the amount by which the government's receipts exceed its expenditures.
- A surplus budget allows the government to either save the excess funds or use them to pay off existing debts.
Correct Statements:
- Statement 1: When the budgetary proposals of a government for a particular year propose higher expenditures than the receipts, it is known as a deficit budget. This statement is correct as it accurately defines a deficit budget.
- Statement 2: If the budget proposes lesser expenditures than the receipts, then it is a surplus budget. This statement is also correct as it accurately defines a surplus budget.
Conclusion:
- Both statements 1 and 2 are correct, as they correctly describe the concepts of deficit and surplus budgets. A deficit budget occurs when expenditures exceed receipts, while a surplus budget occurs when expenditures are lower than receipts.
Community Answer
Consider the following statements. 1. When the budgetary proposals of...
Consider the following statements
when the budgetary proposal of a government for a particular years proposes higher expenditure than the receipts, it is known as a deficit budget
if the budget propose lesser expanditure than the receipt
then these it is a surpual budget
both of them ans
when the budgetary proposal of a government for a particular years proposes higher expenditure than the receipts, it is known as a deficit budget
if the budget propose lesser expanditure than the receipt
then these it is a surpual budget
both of them ans
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Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. 1. When the budgetary proposals of a government for a particular year proposes higher expenditures than the receipts, it is known as a deficit budget2. If the budget proposes lesser expenditures than the receipts, then it is a surplus budgetWhich of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both of themd) None of themCorrect answer is option 'C'. Can you explain this answer?.
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