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  1. Definition of Budget
  2. Categories of Budget
  3. Reasons for Balanced Budgets
  4. Meaning of Surplus and Deficit Budgets
  5. Ways of Financing Deficit Budget and their Effects
  6. 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


It is made mostly on how much to spend or consume based on how much they may be expecting as



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.

Lesson tags: Economics Lesson Notes, Economics Objective Questions, SS2 Economics, SS2 Economics Evaluation Questions, SS2 Economics Evaluation Questions Third Term, SS2 Economics Objective Questions, SS2 Economics Objective Questions Third Term, SS2 Economics Third Term
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