Keynes suggested a deficit budget for a developing economy but classic

1.	Keynes suggested a deficit budget for a developing economy but classical economists supported a surplus budget.(a) Differentiate the two concepts of budget.(b) What is your opinion? Justify your answer.
Answer» (a) Deficit budget and Surplus budget. When the proposed expenditure is greater than the expected revenue, the budget is said to be deficient. On the other hand, when the proposed expenditure is less than the expected revenue, the budget is said to be a surplus one. (b) I do agree with the opinion of Keynes. Because in a developing economy govt, will have to make so many developmental activities for the welfare of the society. In such a situation, a deficit budget is possible and it will become unavoidable.

Keynes suggested a deficit budget for a developing economy but classical economists supported a surplus budget.(a) Differentiate the two concepts of budget.(b) What is your opinion? Justify your answer.

Answer»

(a) Deficit budget and Surplus budget.
When the proposed expenditure is greater than the expected revenue, the budget is said to be deficient. On the other hand, when the proposed expenditure is less than the expected revenue, the budget is said to be a surplus one.

(b) I do agree with the opinion of Keynes. Because in a developing economy govt, will have to make so many developmental activities for the welfare of the society. In such a situation, a deficit budget is possible and it will become unavoidable.

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