As a proportion of GDP, if estimated revenues equal 30 per cent and estimated outlays equal 27 per cent, the cash balance of the budget is estimated to be:
A) a surplus of 57 per cent.
B) a surplus of 3 per cent.
C) a deficit of 3 per cent.
D) a deficit of 57 per cent.

Question

Quizplus · Accepted Answer

To find the cash balance of the budget, we need to subtract estimated outlays from estimated revenues.

Cash Balance = Estimated Revenues - Estimated Outlays

= 30% - 27%

= 3%

Since the result is positive, it indicates a surplus. Therefore, the correct answer is option B, a surplus of 3 per cent.

As a Proportion of GDP, If Estimated Revenues Equal 30