Question : The "revenue surplus" in the government budget refers to a situation where:
Option 1: Total revenue is greater than total expenditure
Option 2: Total revenue is equal to total expenditure
Option 3: Total revenue is less than total expenditure
Option 4: Total revenue exceeds total non-tax revenue
Correct Answer: Total revenue is greater than total expenditure
Solution : The correct answer is (a) Total revenue is greater than total expenditure.
The term "revenue surplus" in the government budget refers to a situation where the total revenue generated by the government is greater than its total expenditure. In other words, the government is collecting more revenue from various sources such as taxes, fees, and other sources than it is spending on various programs, services, and other expenses.
A revenue surplus indicates that the government's income exceeds its expenses, resulting in a positive net financial position. This surplus can be used for various purposes, such as reducing debt, funding investments, creating reserves, or implementing fiscal stimulus measures.
