In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982.
A) fiscal drag
B) budget deficit
C) debt brake
D) revenue backlog

Question

Quizplus · Accepted Answer

A budget deficit occurs when a government's expenditures exceed its revenues, leading to borrowing to cover the shortfall.

In 1982, the Total Expenditure of the Government of Kargenia