A budget with a projected revenue in excess of its expenditure is said to be?

Step 1: Analyze the question The question asks what we call a budget where projected revenue is greater than planned expenditure.

Step 2: Explain the concept There are three basic types of government budget:

| Type | Condition | |---|---| | Balanced budget | Revenue = Expenditure | | Surplus budget | Revenue > Expenditure | | Deficit budget | Revenue < Expenditure |

Step 3: Apply to the question The question says revenue is in excess of expenditure, so revenue > expenditure. That is a surplus budget.

Checking the other options:

• A. Balanced: revenue equals expenditure, so this is wrong.
• C. Deficit: expenditure exceeds revenue, which is the opposite of the question.
• D. Inflationary: this describes a possible effect of excessive spending, not a type of budget based on revenue and expenditure.

Step 4: Answer The correct option is B. Surplus.

Exam tip: Think of your own pocket money. If you collect ₦5,000 and spend only ₦3,000, you have a surplus of ₦2,000. If you spend ₦7,000, you are in deficit. Remember: Surplus = Saving extra; Deficit = Debt/Dip. Nigeria's budgets are usually deficit budgets, which is why they are often financed by borrowing.