The situation whereby the government of a country spends more than its budgets for a given financial year is known as
Question 1 Report
The situation whereby the government of a country spends more than its budgets for a given financial year is known as
Answer Details
The situation whereby the government of a country spends more than its budgets for a given financial year is known as a "deficit budget".
In other words, a deficit budget occurs when a government's spending exceeds its revenue or income in a given period of time, usually a fiscal year. This means that the government is spending more money than it is taking in, which can lead to an increase in the national debt.
To cover the deficit, the government may borrow money from domestic or foreign sources, increase taxes, reduce spending in other areas, or engage in other fiscal policies to balance its books.
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