SURPLUS BUDGET DEFICIT BUDGET

58. SURPLUS  BUDGET	DEFICIT  BUDGET
1.      Meaning A surplus budget takes place when the estimated receipts are more than estimated expenditure. 2.      Formula Surplus Budget = (Estimated Receipts > Estimated Expenditure) 3.      Preference by countries A country will prefer surplus budget, because the surplus can be used to repay outstanding loans or liabilities.	A deficit takes place when its estimated expenditure is more than estimated receipts. Deficit Budget = (estimated Receipts < Estimated Expenditure) A country does not prefer deficit budget, as it affects economic growth and development.