Question

Djiboutiopia 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 Djibouti Opia for the last fiscal year was 1.06 billion dollars. The country collected 1.05 billion dollars in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Djibouti's budget balance

Answer 1

Answer:

The Djibouti's budget balance is - $0.01 billion dollars

Explanation:

The computation of the budget balance is shown below:

= Country revenue - total spending for the federal government'

= $1.05 billion dollars - $1.06 billion dollars

= - $0.01 billion dollars

This negative amount reflects the larger amount of government expenditure and a lesser amount of the country's revenue. This means that the government is suffering from the loss of - 0.01 billion dollars