Question

Prepare a comparative table in which you make a comparative analysis in your own words between the following concepts:
    a. Budgetary deficit
    b. Budget surplus

Answer 1

SOLUTION:

Budgetary deficit	Budgetary Surplus
Budget deficit is a situation where the government expenditure exceeds revenue	Budget surplus is a situation where the government revenue exceeds expenditure
Budgetary deficit usually makes prices go up	Budgetary Surplus usually makes prices goes down; and often considered as a good sign of a healthy economy
Budgetary deficit is very common	Budgetary Surplus occurs rarely in reality
The cost cuttings, saving, and borrowing will be high in budgetary deficit	The government expenditure will be high under budget surplus