ECONOMICS
BUDGET DEFICITS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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BE*BR
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BE+BR
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BR-BE
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NONE OF THE ABOVE
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Detailed explanation-1: -Detailed Solution. The correct answer is Budget expenditure-Budget receipts excluding borrowings. Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. While calculating the total revenue, borrowings are not included.
Detailed explanation-2: -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-3: -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-4: -Fiscal deficit refers to the difference between total receipts and total expenditure.
Detailed explanation-5: -Hence, budget deficit is equal to difference between total income and total expenditure.