Indian-Economy
General Knowledge

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Q.

Fiscal deficit  is defined as:

 A.

the sum of monetized deficit and budgetary deficit

 B.

net increase in Union Governments borrowings from the Reserve Bank of India

 C.

the difference between current expenditure and current revenue

 D.

government's total expenditures exceed the revenue that it generates

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Solution:
Option(D) is correct

Fiscal deficit is when a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.


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