Economics • Indian EconomyEasy
What does the term 'Fiscal Deficit' represent in the union budget?
A. The excess of total government expenditure over total non-debt receipts✓ Correct Answer
B. The total amount of foreign currency reserves held by the central bank
C. The difference between tax revenue collected and subsidies disbursed
D. The annual profit earned by public sector commercial banks
💡 Solution & Explanation
Fiscal deficit measures the shortfall of total government revenue compared to total expenditure, indicating the total borrowing requirements needed by the government during the fiscal year. Non-debt receipts exclude loan recoveries and borrowings. Revenue deficit focuses strictly on current revenue and expenditure accounts.
More Economics Indian Economy questions
- What is the primary purpose of the 'National Infrastructure Pipeline (NIP)' in India?
- What is the core economic purpose of the 'PM-SVANidhi' scheme as implemented across urban local bodies in…
- What is the main mandate of the 'Commission for Agricultural Costs and Prices (CACP)' in India?
- What does 'Fiscal Deficit' signify in the framework of government public finance?
- How does the 'Bhavantar Bharpai Yojana' implemented by the Haryana government function as a market…