Which of the following is/are the components of the Fiscal Deficit?begin{enumerate}item Budgetary Deficititem Market Borrowingitem Expenditure made from Pradhan Mantri Rahat Koshend{enumerate} Select the correct answer using the codes given below:

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is/are the components of the Fiscal Deficit?

A	Only 1
B	Only 2
C	Only 3
D	All of these

Explanation:

Detailed explanation-1: -The two components of the fiscal deficit are income and expenditure. Income: the total income generated by the government can be divided into: Tax revenue: GST, customs duties, corporate tax, etc. Non-tax revenue: dividends and profits, interest receipts, etc.

Detailed explanation-2: -Fiscal deficit refers to the difference between total receipts and total expenditure.

Detailed explanation-3: -Types of Deficits in India Primary Deficit: Fiscal deficit as reduced by interest payments. Effective Revenue Deficit: Revenue deficit as reduced by grants for the creation of capital assets. Monetized Fiscal Deficit: The part of the fiscal deficit which is covered by the borrowing from the RBI.

Detailed explanation-4: -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.

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