Which of the following could result in a county government budget in deficit?
a.
The government raises sales and property taxes without adjusting expenditures.
b.
The county closes a fire station, reducing expenditures, without adjusting taxes.
c.
The county gives all public school teachers a $2,000 raise without adjusting taxes.
d.
The county collects donations to build a fountain in city hall.

Respuesta :

The action that could result in a county government budget running into deficit is c. The county gives all public school teachers a $2,000 raise without adjusting taxes.

What is a deficit budget?

A deficit budget is a budget whose expenditure exceeds its revenue.

Deficits are simply the excess of expenditure over revenue in any fiscal period.

When the government raises its revenue through sales, property taxes, or donations collected or reduces its expenditures, it does not run into a deficit unless the expenditures still exceed the revenues.

Thus, the action that could result in a county government budget running into deficit is Option C.

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