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JAMB Economics 1991 Question 37

Question 37

Public Finance

Budget deficit is the amount by which

  1. A.total expenditure exceeds revenue
  2. B.recurrent expenditure exceeds revenue
  3. C.capital expenditure exceeds revenue
  4. D.recurrent expenditure exceeds capital expenditure
Show the answer and explanation

Answer: A (total expenditure exceeds revenue)

Explanation

A budget deficit is the gap when total government spending is greater than total revenue.