Give the merits of a surplus budget.

Question

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Answer

Following are the benefits of surplus budget.
Economic Stability is maintained.
It helps to control the situation of inflation if it is extreme.
Government can roll back the supply of money from the economy, reduces purchasing . ' Power and controls inflation. take hel
Even if the expenditure increases, Govt. need not have to p of Debt.
In Such type of budget current expenditures are met from current tax revenue. So there is no need of borrowing loan. Thus, there is no need of increasing tax to repay the loan. That means future generation does not have to bear any burden.

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