If government expenditure exceeds revenue, this result in

If the government expenditure exceeds revenue, it results in a budget deficit. This means that the government is spending more money than it is earning in revenue. In order to fund the budget deficit, the government may need to borrow money, which can lead to an increase in national debt. A balanced budget is when government revenue is equal to government expenditure, while a budget surplus occurs when government revenue is greater than government expenditure.