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WAEC Economics 1999 Question 25

Question 25

Public Finance

The situation whereby a government spends more than it budgets for a fiscal year is known as

  1. A.extra budget
  2. B.surplus budget
  3. C.mid-year budget
  4. D.deficit budget
Show the answer and explanation

Answer: D (deficit budget)

Explanation

When government expenditure exceeds its revenue for the year, the budget is in deficit.