Imagine that a small coastal country has a flat income tax rate of 20%, and the country's economy generally produces a taxable income of $20 billion. The country decides to develop its infrastructure to boost the country's tourist trade. The infrastructure development is estimated to cost $7 billion. Which of the following will be the outcome of the country's tax revenue and spending on infrastructure improvements?
The government runs a budget surplus.
The government runs a budget deficit.
The government has a balanced budget.
The answer cannot be determined from the information given.