The government of Oaksland,a less-developed country,has been spending the revenue generated from taxes and fees on infrastructural development,health care,and public utilities.Its expenditure has exceeded its revenue.This condition referred to as a _____.

Question

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A budget deficit occurs when expenditures exceed revenue. This scenario describes Oaksland's situation where the government is spending more than they are generating through taxes and fees. It is not a trade surplus because that would refer to a situation where a country has exported more goods and services than they have imported, resulting in a surplus of funds. It is not a positive balance of payment because that refers to the overall financial flows into and out of a country, including trade, investments, and aid. A break-even point refers to the point at which revenues equal expenses, which is not the case in this scenario.

The Government of Oaksland,a Less-Developed Country,has Been Spending the Revenue