Distinguish between:
3. Deficit budget and balanced budget
Deficit budget
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Balanced budget
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It refers to the excess of total budget expenditure over the total budget receipts.
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It refers to the budget in which the total budget expenditure is equal to the total budget receipts.
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It leads to an increase in the liabilities of the government or causes a reduction in its reserves.
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It has no effect on the liabilities or the reserves of the government.
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