In the economy, tax revenue collected by the government this year is $15 million and government outlays are $13 million. This co
untry currently has a ____. Multiple Choice budget deficit of $3 million. budget surplus of $2 million public debt of $2 million budget surplus of $3 million
When income or receipt increases from the outlay, then budget surplus arises. Whereas when outlay increases from the income or receipts the budget deficit arises.
Revenue Collection for the year = $15 million
Government outlay for the year = $13 million
Budget Surplus / Deficit = $15 million - $13 million = $2 million budget Surplus
Government outlays are government expenditures made by a government in the form of a kind service ( cash disbursement ) which are recorded for the purpose of determine the overall government spending in relation to generated revenue.
since the outlays are lower than the revenue collected there is most likely a budget surplus ( $15 million - $13 million = $2 million ).
