You must complete Elementary Theory of Fiscal Policy to unlock this Lesson.
BALANCED AND UNBALANCED BUDGETS
CONTENT
- Definition of Budget
- Categories of Budget
- Reasons for Balanced Budgets
- Meaning of Surplus and Deficit Budgets
- Ways of Financing Deficit Budget and their Effects
- Effects of Deficit Budget Financing
Definition of Budget
A budget is defined as a statement of projected income sand expenditures of an individual, family, organization and nation over a given period of the Budget can be used as organizational tool that guides the achievement of corporate goals.
Categories of Budget
A budget can be categorized into 2 parts, namely:
(i) Income
(ii) Expenditure
Income
It is made mostly on how much to spend or consume based on how much they may be expecting as
income.
Expenditure
This one exists in a situations where how much is projected to be spent.
When income expected exceeds the expenditure or vice-versa we say we have an unbalanced budget.
However, when the projected income equals the expenditure we say we have a balanced budget.
You are viewing an excerpt of this lesson. Subscribing to the subject will give you access to the following:
- NEW: Download the entire term's content in MS Word document format (1-year plan only)
- The complete lesson note and evaluation questions for this topic
- The complete lessons for the subject and class (First Term, Second Term & Third Term)
- Media-rich, interactive and gamified content
- End-of-lesson objective questions with detailed explanations to force mastery of content
- Simulated termly preparatory examination questions
- Discussion boards on all lessons and subjects
- Guaranteed learning
ClassHall Instructor
Halima Ahmadu
Maryam