[amp_mcq option1=”Balanced budget” option2=”Surplus budget” option3=”Deficit budget” option4=”Zero-based budget” correct=”option3″]
The correct answer is: c) Deficit budget
A deficit budget is a budget in which the government’s spending exceeds its revenue. This means that the government has to borrow money to cover the difference. The Assam government usually presents a deficit budget because it has to spend more money on development projects and social welfare programs than it collects in taxes.
A balanced budget is a budget in which the government’s spending equals its revenue. This is the ideal situation, but it is very difficult to achieve.
A surplus budget is a budget in which the government’s spending is less than its revenue. This means that the government has a surplus of money, which it can use to pay down its debt or invest in new projects.
A zero-based budget is a budget in which every item of spending is justified from scratch, as if the government were starting from zero. This is a very rigorous approach to budgeting, but it can help to identify waste and inefficiency in government spending.