BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a gap between the values of exports and imports
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It is a gap between exports and imports minus external borrowings
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It is a gap between total expenditure and total receipts of the government
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None of the above
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Detailed explanation-1: -Definition: The difference between total revenue and total expenditure of the government is termed as fiscal deficit.
Detailed explanation-2: -Fiscal deficit is the difference between the total revenue and total expenditure of a government in a financial year. Fiscal deficit arises when the expenditure of a government is more than the revenue generated by the government in a given fiscal year.
Detailed explanation-3: -Fiscal deficit refers to the difference between total receipts and total expenditure.
Detailed explanation-4: -Fiscal deficit is the excess of total government expenditure (revenue expenditure + capital expenditure) over total government receipts (revenue receipts + capital other than borrowings) plus total borrowings of the government.
Detailed explanation-5: -It means that government will not be able to meet its revenue expenditure from its revenue receipts. Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.