Economics • Indian EconomyEasy
What does the 'Fiscal Deficit' in the Union Budget represent?
A. The difference between total revenue receipts and total revenue expenditure.
B. The excess of total government expenditure over total receipts excluding borrowings, representing the total borrowing requirement of the government.✓ Correct Answer
C. The net interest payments made by the government on past sovereign debts.
D. The difference between export earnings and import expenditures.
💡 Solution & Explanation
Fiscal deficit measures the excess of total government expenditure over total receipts excluding borrowings, thereby indicating the government's total net borrowing requirements during a financial year. Revenue deficit focuses strictly on the difference between current revenue receipts and revenue expenditures without including capital transactions. Budgetary definitions and deficit metrics are essential components of Indian economy syllabi.
More Economics Indian Economy questions
- Which institution in India is statutorily responsible for formulating and releasing official estimates of…
- What is the primary operational objective of the 'Deendayal Antyodaya Yojana - National Rural Livelihoods…
- What does the 'Fiscal Responsibility and Budget Management (FRBM) Act, 2003' mandate for the Indian economy?
- How does the Production Linked Incentive (PLI) scheme seek to transform the manufacturing sector in India?
- Which body is responsible for recommending the formula for the vertical and horizontal devolution of tax…