A budget deficit in Andhra Pradesh means:

Planned spending exceeds planned revenue
Revenue exceeds spending
Spending and revenue are equal
None of the above

The correct answer is: a) Planned spending exceeds planned revenue.

A budget deficit occurs when a government spends more money than it takes in during a fiscal year. This can happen for a number of reasons, such as a recession, a natural disaster, or an increase in government spending. When a government runs a budget deficit, it must borrow money to make up the difference. This can lead to an increase in the national debt.

There are a number of ways to reduce a budget deficit. One way is to increase taxes. Another way is to cut spending. However, both of these options can be unpopular with voters. Another way to reduce a budget deficit is to grow the economy. When the economy grows, tax revenue increases and government spending decreases.

A budget deficit is not necessarily a bad thing. In fact, some economists believe that a small budget deficit can be a good thing, as it can help to stimulate the economy. However, a large budget deficit can be a problem, as it can lead to an increase in the national debt.

Here is a brief explanation of each option:

  • Option a: Planned spending exceeds planned revenue. This is the definition of a budget deficit.
  • Option b: Revenue exceeds spending. This is the definition of a budget surplus.
  • Option c: Spending and revenue are equal. This is the definition of a balanced budget.
  • Option d: None of the above. This is not a correct answer.
Exit mobile version