Question

Distinguish between:

(i) Balanced budget and surplus budget.

(ii) Developmental expenditure and non-developmental expenditure.

Answer 1

(i) When budget receipts equal budget expenditure,it is called ‘balanced budget’. When budget receipts exceed budget expenditure,it is called ‘surplus budget.

(ii) Expenditure on developmental activities by government on different sectors of the economy is called developmental expenditure while expenditure on the essential services of routine nature is called non-developmental expenditure.