State with reasons whether you agree or disagree with the following statements.
2. When government expenditure is greater than government revenue, it is called Surplus Budget.
Answer:
2. No, the above statement is not correct. This is because surplus budget refers to the excess of government revenue over the government expenditure. In other words, when government revenue is greater than its expenditure, it is called a surplus budget. On the other hand, when government expenditure is greater than its revenue, it is called a deficit budget.
