Economics • Indian EconomyMedium
What does 'Fiscal Deficit' signify in the framework of government public finance?
A. The excess of total government expenditure over total revenue receipts excluding borrowings✓ Correct Answer
B. The difference between revenue expenditure and revenue receipts
C. The total outstanding external debt owed to international financial institutions
D. The net interest payments made by the government on domestic treasury bonds
💡 Solution & Explanation
Fiscal deficit measures the total borrowing requirements of the government from all sources when total expenditure exceeds total revenue receipts and non-debt capital receipts. Revenue deficit specifically measures the excess of government revenue expenditure over revenue receipts. Primary deficit represents fiscal deficit minus interest payments on previous borrowings. Fiscal responsibility legislation sets statutory targets to limit fiscal deficits and achieve macroeconomic stability.
More Economics Indian Economy questions
- How does the 'Bhavantar Bharpai Yojana' implemented by the Haryana government function as a market…
- Which of the following indices is published by the World Bank as part of its discontinued 'Ease of Doing…
- Evaluate the macroeconomic implications of external multilateral funding (such as from the World Bank or…
- What is the core focus of the 'Atmanirbhar Bharat Abhiyan' economic package launched by the Indian government?
- What does the 'Fiscal Responsibility and Budget Management (FRBM) Act, 2003' mandate for the Central…