Question:

The budget under which the government may spend an amount equal to the revenue it collects is referred to as a ...... Budget.

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In a balanced budget, the total expenditure equals total revenue, which is a key concept in fiscal policy.
Updated On: Jun 19, 2025
  • Surplus
  • Deficit
  • Balanced
  • Deflationary
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The Correct Option is C

Solution and Explanation

A balanced budget refers to a situation where the government spends exactly as much as it collects in revenue. A surplus budget would imply spending less than revenue, and a deficit budget means spending more than the revenue.
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