In which of the following situations does the government run a deficit budget?

The correct option is: When the government expenditure exceeds revenue.

Step-by-Step Explanation:

1. Understanding Government Budget:
A government budget is an annual financial statement that estimates the government's expected revenue (receipts) and planned expenditure for a specific fiscal year.

2. Types of Budgets based on Balance:
Depending on the relationship between total revenue and total expenditure, a government budget can be classified into three types:
��� Balanced Budget: Occurs when the government's estimated revenue is exactly equal to its anticipated expenditure.
• Surplus Budget: Occurs when the government's estimated revenue exceeds its anticipated expenditure.
• Deficit Budget: Occurs when the government's anticipated expenditure exceeds its estimated revenue.

3. Analyzing the Options:
• "When the government expenditure and revenue both are zero": This is not a standard economic scenario for an active government.
• "When the government revenue exceeds expenditure": This represents a budget surplus.
• "When the government expenditure equals revenue": This represents a balanced budget.
• "When the government expenditure exceeds revenue": Since the spending (expenditure) is greater than the income (revenue), the government has a shortfall (deficit) and must borrow to cover the difference. This is a deficit budget.