How does the Balanced budget multiplier work?

Question

06 Jul 2022

Answer :

Word Count : 162

A balanced budget (particularly that of a government) is a budget in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists (the accounts "balance"). More generally, it _____ __________ ___ ___ __________ ____ _____.
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Particular		in crores
(i)	Compensation of employees	2000
(ii)	Rent and interest	800
(iii)	Indirect taxes	120
(iv)	Corporation tax	460
(v)	Consumption of fixed capital	100
(vi)	Subsidies	20
(vii)	Dividend	940
(viii)	Undistributed profits	300
(ix)	Net factor income from abroad	150
(x)	Mixed Income	200