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

Estimate classical linear regression model, The following model shows the c...

The following model shows the consumption function given: Ct = AD t β 2 Where A and β 2 are unknown constants and D is disposable income. (a) Show how by taking logari

Theory of Profit Maximization, arguments in favour and against of Theory of...

arguments in favour and against of Theory of Profit Maximization

Ppc , two countries workland and playland have similar population and ident...

two countries workland and playland have similar population and identical production possibilities curves but diffrefences . the procuction possibilities combination are as follows

What is the price elasticity of demand for electricity, 1. On Wednesday the...

1. On Wednesday the 16 th , 2008 an enormous avalanche knocked out the lines that transmitted electricity from a hydroelectric dam to Juneau, Alaska. This eliminated Juneau's prima

Short period analysis - theory of production, SHORT PERIOD ANALYSIS: S...

SHORT PERIOD ANALYSIS: Short period in production refers to a time when some inputs remain fixed. A fixed input is one, whose quantity cannot be changed readily, whereas, a va

., what total cost function yields a U-shaped average total cost function

what total cost function yields a U-shaped average total cost function

Production, explain 6 factors that determine volume of production

explain 6 factors that determine volume of production

Market Structures, Using the key distinguishing features of any market stru...

Using the key distinguishing features of any market structure describe the market structure for the South African mobile telecommunications industry

Proposal, #quesSuppose that two anti-marijuana proposals are currently bein...

#quesSuppose that two anti-marijuana proposals are currently being debated in Congress. Proposal I will reduce the supply of marijuana and cause its price to rise by 7%. Proposal I

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