What is a unbalanced budget?

Answer 1

"The budget in which income and expenditure are not equal to each other is known as unbalansed budget."

It is classified as follows:

1)Surplus Budget

2)Deficit Budget

1)Surplus budget:

It is the budget in which revenue of the government is more than expenditure.

It is advocated during inflation to reduce prices.In this case governmant imposes high taxes which in turn reduces the demand for goods and services, thereby bringing down the prices.

2)Deficit budget:

It is the budget in which the expenditure of the government is more than revenue.It is advocated during depression.In tis case the government incurs excess expenditure which increases the level of employment.This leads to increase inthe demand for goods and services, thereby leading to revival of the economy. wrong its wheny our budget falls over cause its top heavy