The correct answer is: D) Zero-based budget
A zero-based budget is a budgeting process in which all expenses must be justified for each new budget period, regardless of whether the same expenses were incurred in the previous period. This is in contrast to a traditional incremental budgeting process, in which the previous year’s budget is the starting point for the current year’s budget, and only changes are required to be justified.
Telangana aims to follow a zero-based budget in order to ensure that all spending is aligned with the state’s priorities and that there is no waste or duplication of effort. The state government believes that a zero-based budget will help to improve efficiency and effectiveness in government spending, and will ultimately lead to better outcomes for the people of Telangana.
A surplus budget is a budget in which the government’s revenues exceed its expenditures. This can occur when the economy is strong and tax revenues are high, or when the government takes in more money from other sources, such as asset sales or borrowing. A surplus budget can be used to pay down debt, invest in infrastructure, or provide tax breaks.
A balanced budget is a budget in which the government’s revenues equal its expenditures. This is often seen as an ideal goal, as it means that the government is not borrowing money to fund its operations. However, a balanced budget can be difficult to achieve, especially during times of economic recession.
A deficit budget is a budget in which the government’s expenditures exceed its revenues. This can occur when the economy is weak and tax revenues are low, or when the government spends more money than it takes in. A deficit budget can be financed by borrowing money, which can lead to an increase in the national debt.