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Balanced Surplus And Deficit Budget | Government Budget and the Economy Class 12th Economics | iPrep

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7 days ago

balanced Surplus and deficit budgets measures  of government deficit Revenue fiscal and primary deficits in Revenue deficit the budgeted revenue  and expenditure figures are not equal to actual amount of Revenue received and or the actual  amount of expenditures in Revenue Surplus the actual amount of net income exceeds unlike the  revenue deficit at times the government's total expenditure crosses the limit of the revenue as  generated but it excludes the money from borrowing then fiscal defici
t occurs according to Keen  the deficits helps progressively the countries to getting out from the economic recession  the requirement to borrow the money from the market for any government usually includes the  interest obligations on the accumulated debt thus by measuring primary deficit it tries to focus on  present fiscal imbalances fiscal policy changes in government expenditure and taxes by doing changes  in the expenditures and taxes government intends to increase output and income in the
economy When  government takes the expansionary method then the expenditure increases than the rate of taxes  as imposed it eventually results in better GDP and reduces unemployment in contractionary  approach government increases the tax rates to reduce the inflation which on the other side  increases unemployment balanced budget multiplier proportional taxes and transfer payments in any  balanced budget the consequence of increasing government expenditure shows the balanced  budget multiplier
the increase in government spending here equals by the increase in taxes in  respective manner which leads to increase in net income by the same amount the proportional income  tax can be acted as an automatic stabilizer in the economy as it increases the flows of disposable  income and consumer spending in economics the transfer payments or government transfer shows the  redistribution of income and accumulated wealth as done with goods or services during transaction  these payments are genera
lly non- exhaustible as any resource are not directly absorbed here  for more such videos download the iPrep app now

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