Explain how surplus budget is an useful measure to control inflation

cbse-class-12

#1

Explain how surplus budget is an useful measure to control inflation. Is it possible to follow such a 'polity in India?


#2

Surplus budget refers to a situation in which government’s expenditures are less than government’s revenues. This is a good policy to reduce the liquidity and hence demand and inflation, however surplus budget cannot’ be presented in developing countries like India due to low level of development.