| Surplus Budget | Deficit Budget |
| (i) If the anticipated revenue of the Government exceeds it anticipated expenditure in a year, it is known an surplus budget. | (i) If the anticipated expenditure of the Government exceeds its anticipated revenue in a year, it is known as deficit budget. |
| (ii) Governments of developed countries usually plan for a surplus budget. | (ii) Governments of developed countries usually plan for a deficit budget. |
| (iii) It indicates the financial soundness of the economy | (iii) It indicates that the economy is not that healthy |
| (iv) This implies that the Government is giving preference to creating wealth from resources instead of spending for the welfare of the people | (iv) This indicates a deliberate excessive expenditure by the Government to set the economy on the path of progress and growth, keeping in mind the welfare of the people |
