Question

Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $4.71 billion. The country collected $4.83 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance

Answer 1

Answer: $0.12 billion

Step-by-step explanation:

Based on the information given in the question:

Total spending for Lilliput last fiscal year = $4.71 billion

Tax collected(Revenue)= $4.83 billion

Government transfers = $0

Lilliput's budget balance based on the information provided will be:

= (Taxes - Government transfers) - Government expenditures

= ($4.83 billion - $0) - $4.71 billion

= $0.12 billion