Types of budget, Microeconomics

Assignment Help:

Types of budget:

Surplus Budget: A surplus budget occurs when the expected government revenue is planned to exceed the proposed government expenditure. It can be achieved by reducing government expenditure or increasing taxation or both. A surplus budget is usually adopted to reduce inflationary pressures because it reduces aggregate effective demand in the economy.

Deficit Budget:A deficit budget occurs when the government revenue estimate is less than the proposed government expenditure. The fiscal deficit can be financed by raising loans from both internal and external sources. A deficit budget may be used to stimulate domestic production during economic recession or depression.

Balanced Budget: A government budget is balanced when its revenue estimate is equal to the intended expenditure. It is also called a neutral budget because it is usually adopted to keep the level of economic activities stable as in the preceding year.


Related Discussions:- Types of budget

Contribution of foreign trade to economic development, Contribution of Fore...

Contribution of Foreign Trade to Economic Development: Foreign trade contributes to economic development in a number of ways.  •  It provides flow of technology which al

Ricardo theory of intrnational trade, Meaning of absolute cost difference a...

Meaning of absolute cost difference and comparative cost difference.

Gross domestic product - deflator, Gross Domestic Product, Deflator: A pric...

Gross Domestic Product, Deflator: A price index that adjusts the overall value of GDP according to average increase in the prices of all output. GDP deflator equals the ratio of no

Economics, in economics what is cobb douglas theory?

in economics what is cobb douglas theory?

Consumer demand analysis "utility", how does utility figure in the analysis...

how does utility figure in the analysis of consumer demand

Home work, how do minimum units cost change with changes in fixed cost

how do minimum units cost change with changes in fixed cost

Natural monopoly, Introduction for a natural monopoly assignment

Introduction for a natural monopoly assignment

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd