Which of the following budget types specifically aims to reduce the deficit by either increasing taxes or reducing government spending?

CA Foundation · Business Economics · MTP · April 2025
Which of the following budget types specifically aims to reduce the deficit by either increasing taxes or reducing government spending?
(A) A. Balanced budget
(B) B. Expansionary budget
(C) C. Contractionary budget
(D) D. Surplus budget

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Contractionary budget

Topics: Public Finance

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