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Answer:Budget is a financial statements indicating estimated and sizes of anticipated revenue and proposed expenditure for a period of time.

The personal budget of an individual could be a surplus budget or deficit budget, or balance budget. It is surplus when income is greater than expenditure. It is deficit when expenditure is greater than revenue, it is balance when income is equal to the expenditure.

In a situation where the income is not enough to cover the expenditure the person can cut down most of the expenses to a manageable size, so as to ensure that there is more money to meet the most pressing need at the point in time.

Explanation:

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