BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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total income less government borrowing
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total payments less total receipts
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total payments less capital receipts
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total expenditure less total receipts excluding borrowing
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Detailed explanation-1: -Fiscal deficit is the difference between the government’s total expenditure and its total receipts, excluding borrowing. Adding revenue receipts and non-debt creating capital receipts gives the total receipts.
Detailed explanation-2: -Definition: The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.
Detailed explanation-3: -Formula for Calculating Fiscal Deficit Fiscal Deficit = (Revenue Expenditure + Capital Expenditure) – (Revenue Receipts + Capital Receipts). The formula reads out in the simplified form as-. Fiscal Deficit = Total expenditure-Total receipts excluding borrowings.
Detailed explanation-4: -Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings. The extent of fiscal deficit is an indication of how far the government is spending beyond its means.
Detailed explanation-5: -Fiscal deficit is defined as the excess of total expenditures over the total receipts, excluding the borrowings in a year. In other words, this can be defined as the amount that the government needs to borrow in order to meet all expenses. The more the fiscal deficit, the more will be the amount borrowed.