Public Finance Flashcards
1
Q
Balance Budget
A
when expenditure is equal to revenue
2
Q
Budget Deficit
A
when expenditure exceeds revenue.
(government spends more than it earns)
3
Q
Fiscal Deficit
A
occurs when government borrows to meet revenue short fall.
4
Q
National Debt
A
the sum of what government borrow over the years to finance budget deficit.
5
Q
National Budget
A
a statement of the governments estimate revenue and the expenditure for a country for the coming year.
6
Q
budget surplus
A
when revenue exceeds expenditure.
