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Deficit Budget : Why ?

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Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 07 February 2023

Why the budget is always?

They can plan for surplus budget to avoid borrowings

Replies (4)

Quick Summary

This discussion explores the reasons behind deficit budgets, questioning why governments don't consistently plan for surplus budgets. It explains that deficits arise when government income (inflows) is less than planned spending, often due to discrete and unplanned income streams. The core issue is the lack of adequate planning for revenue to meet expenditure.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 07 February 2023

Deficit takes place when the inflows are not planned.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 07 February 2023

Question is different

sabyasachi mukherjee

Profession Business

28246 Points Posted on 08 February 2023

Question is different I know but the answer has a double meaning.
Let me explain..
1. if inflows are discrete and unplanned then it will be lesser than planned expenditure.
2. Hence deficit arises.