Question : What situation would result if government expenditure exceeds the government revenue in the current account?
Option 1: Deficit budgeting
Option 2: Zero-based budgeting
Option 3: Performance-based budgeting
Option 4: Surplus budgeting
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Correct Answer: Deficit budgeting
Solution : The correct option is Deficit budgeting .
When a government spends more money than it takes in during a given fiscal year, this is referred to as deficit budgeting. In other words, the government spends more than it brings in through taxes and other sources of income.
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