Which of the following budgets will increase government expenditure?
Answer Details
The budget that would increase government expenditure is a deficit budget.
A deficit budget is a budget where government expenditure exceeds its revenue or income. This means that the government will have to borrow money or take out loans to finance its expenses. This budget can be used to finance important projects such as infrastructure development, social welfare programs, or to stimulate economic growth.
On the other hand, a surplus budget is a budget where government revenue exceeds its expenditure. This type of budget is used to pay off debt, build up savings, or reduce taxes. A balanced budget policy is a budget where government expenditure is equal to its revenue, with no deficit or surplus.
Finally, a zero-based budget is a budgeting method where all expenses must be justified for each new period, as if no budget existed before. It is a way of reducing spending, rather than increasing it.
In summary, a deficit budget increases government expenditure, while a surplus budget reduces it.