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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


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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.

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