General Knowledge - Indian Economy - Discussion

Option A is the correct answer.

Is it still a deficit if All receipts exceed expenditure?

The Answer should be A.

Definition: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.

Description: It is the sum of revenue account deficit and capital account deficit. If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

Budget deficit means the excess of government expenditure over its revenue for a particular year or budget.

Option A is the right answer. Because the "Difference between all receipts and all the expenditure" is simply budget which may either be deficit or surplus. So option C is not the right answer.

Deficit = total expenditure - total receipts.

The option must be corrected.

Answer is correct as they are saying the "difference" and not the excess of receipts over expenditure.

The answer should be A because when total receipts are less than total expenditure it is called deficit budget.

When total receipts are greater than total expenditure it is called surplus budget.

When total receipts are equal to total expenditure it is called balanced budget.

The amount by which a government, company, or individual's spending exceeds its income over a particular period of time. Also called deficit or deficit spending. Opposite of budget surplus.

Option A should be right because budget deficit means something is less than what is expected, means the total money is less than the total money spent. In other words Expenditure is more then receipt.