The table below shows fiscal data for a hypothetical economy in a given financial year:
| Fiscal Component | Value |
|---|---|
| Taxes on incomes and profits | £175 billion\text{£}175\text{ billion}£175 billion |
| Taxes on expenditure (such as VAT) | £115 billion\text{£}115\text{ billion}£115 billion |
| Current government spending on public services | £210 billion\text{£}210\text{ billion}£210 billion |
| Capital government spending (infrastructure) | £45 billion\text{£}45\text{ billion}£45 billion |
| Transfer payments (welfare and state pensions) | £55 billion\text{£}55\text{ billion}£55 billion |
Based on this data, what is the country's overall budget balance?
A budget deficit of £20 billion\text{£}20\text{ billion}£20 billion
A budget surplus of £25 billion\text{£}25\text{ billion}£25 billion
A budget surplus of £35 billion\text{£}35\text{ billion}£35 billion
A budget deficit of £75 billion\text{£}75\text{ billion}£75 billion
44 exam-style questions on Edexcel A A Level Economics 4.5.3 Public sector finances. Each one has a worked solution and a mark scheme showing where the marks go.