Question

Revenue and expenditures are sitting on a balance at the same level. This diagram shows a government’s budget. Which of the following words can best be applied to this budget? unbalanced balanced deficit surplus.

Answer 1

The government’s budget is balanced when the Revenue and expenditures are sitting on a balance at the same level. Option B is correct.

What is government budget?

A government budget is a document created by the government or the other political institution that outlines anticipated tax revenues and proposed expenditure for the new financial year.

The budget is introduced to the legislature in most parliamentary systems, and it typically involves authorization.

Provided that the box dimensions symbolize the lengths of a state's revenues and expenditures, and that the two sizes are equivalent, the budget is called the balanced budget, as Revenue=Expenditure.

If in the second condition, if the two sizes are not equivalent then the budget would be called as the unbalanced budget, and then deficit will occur if the expenditure > revenue and the Surplus will make if revenue > expenditure.

Therefore, option B is correct.

Learn more about the budget, refer to: