Fiscal deficit is a key indicator of the government's financial health and its reliance on borrowing to finance its expenditure. It represents the total amount of funds the government needs to borrow in a given fiscal year.
Fiscal deficit in budget means
Asked in GPSC Prelims CSP 2 2017 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
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Answer: B. Budgetary deficit plus the net borrowings of the government
More Economic Development questions
- Which of the following pairs are correctly matched? 1. Revenue Deficit – Funded either through borrowings from the public or disinvestments 2. Fiscal Deficit – Actual Liability of the Government at certain point of time 3. Monetised Deficit – Borrowings made by the government from the private market.
- Which of the following statement(s) is/are correct regarding different deficits of Indian Budget System? (A) Revenue Deficit can be funded through borrowings from the public or through disinvestment or by cutting revenue expenditure (B) Primary Deficit does not carry the load of interest payments on past loans, it simply indicates total borrowings and not total liabilities
- Which of the following statements are correct regarding targets of Union Budget 2021-22 Estimates? 1. Fiscal deficit – 6.8% of GDP 2. Revenue deficit – 4.1% of GDP 3. Primary deficit – 3.1% of GDP
- There has been a persistent deficit in budget year after year in India. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing revenue expenditure. 2. Introducing new welfare schemes. 3. Rationalizing subsidies. 4. Expanding industries.
- Consider the following statement: Statement 1: Revenue Deficit is the excess of revenue expenditure over revenue receipts.
- Which of the following methods of financing economic development can lead to inflation ? (1) Internal and External Borrowings (2) Progressive Taxation (3) Deficit Financing (4) Government Bonds
- If interest payments are subtracted from gross fiscal deficit, the remainder will be :
- Which of the following statements are correct in respect of Union Budget 2024-25? (1) Total expenditure projected at Rs. 48.21 Lakh Crore (2) Receipts excluding Borrowings Rs. 32.07 Lakh Crore (3) Fiscal Deficit projected at 6.8 % of GDP (4) Net Tax Receipts Rs. 34.83 Lakh Crore