Government Budget

The government liability will increase by

• Issuance of treasury bill

• recovery of loan

• taxes received from the public

• interest received

Government budget shows estimated expenditure of the government in terms of:

• Consumption expenditure

• investment expenditure

• transfer payments

• all of these

The focus off government budget is to:

• maximise fiscal deficit

• minimise fiscal deficit

• to maximise expenditure

• to minimise revenue

a fiscal deficit is good for the economy when:

• borrowings are used to pay government employees their salaries and wages

• interest payment on government loans necessitate the borrowings

• borrowings contributes towards the repair of the reads

• borrowings are primarily used for the construction of hospital.

Fiscal deficit signifies that:

i) government needs to borrow for day to day expenditure.

ii) the current generation increases the financial liability for the future government.

iii) the government has adequate revenue receipt.

• (i) and (ii) are correct

• (ii) and (iii) are correct

• (i) and (iii) are correct

• (i), (ii) and (iii) are correct.