BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue deficit
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Total amount of income tax collected
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Capital deficit
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Fiscal deficit
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Detailed explanation-1: -The overall budgetary position of the government is measured by Fiscal Deficit. It is the difference between total expenditure and total revenue which shows the borrowing power of a country. Was this answer helpful?
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.
Detailed explanation-3: -Deficit budget occurs when expenditure is more than revenue. It shows the financial health of the economy. Hence, budget deficit is equal to difference between total income and total expenditure.
Detailed explanation-4: -Hence, interest payments on the debt, defence purchases, and wage bill are all a part of the government’s revenue expenditure.
Detailed explanation-5: -The government has budgeted fiscal deficit to be ₹16.61 lakh crore or 6.4 per cent of the GDP in the current year ending March 2023. The deficit is funded by market borrowings.