Let's assume the estimated income receipts of the government in the budget 2020-21 was Rs. 22000 crore and its estimated expenditure was 25000 crore.
Which of the following option stands true in regards to the above statement?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: The budget is in deficit
When the estimated expenditure exceeds the estimated income receipts, we say that the budget is in deficit. There is deficit of 3000 crore.