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JAMB Economics 1980 Question 18

Question 18

Public Finance

The budget of Nigeria will be in deficit if

  1. A.revenue expenditure exceeds the revenue receipts
  2. B.capital expenditure exceeds the capital receipts
  3. C.revenue and capital expenditure exceeds revenue and capital receipts
  4. D.the government is spending more than its income
  5. E.all of the above.
Show the answer and explanation

Answer: D (the government is spending more than its income)

Explanation

A budget is in deficit when total government spending is greater than total government income.