Answer:
Deficit in Budget (Expenses > Income) can be corrected by : Increasing Income , apart from by reducing expenses (already mentioned)
Explanation:
Budget (Govt) is item wise estimate of expenses , receipts / Income for a given period of time (financial accounting year) . A situation in which Expenses > Income is called Budgetary Deficit .
This deficit can be solved by :
- Reducing Expenses (Already mentioned in question)
- Apart from above solution , by 'Increasing Receipts' / Income
Receipts/Income can be : Capital Receipts , Revenue Receipts.
Revenue receipts neither increase liability, decrease asset & are recurring. Eg : Tax , Fees
Capital Receipts either create liability ,reduce asset & are non recurring .Eg : Borrowing , Disinvestment .
Either of 'receipts' can be increased to solve the issue .
