GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the difference between current expenditure and current revenue
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net increase in Union Governments borrowings from the Reserve Bank of India
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the sum of budgetary deficit and net increase in internal and external borrowings
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the sum of monetized deficit and budgetary deficit
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Detailed explanation-1: -Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. It is calculated both in absolute terms and as a percentage of the country’s gross domestic product (GDP).
Detailed explanation-2: -Fiscal Deficit and Budget Deficit The higher the amount the Fiscal Deficit, the higher will be the borrowed amount. Thus, the Budgetary deficit is the only difference between all the receipts and all the expenses in both terms, that is revenue and capital account of the government.
Detailed explanation-3: -– Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government. A fiscal deficit occurs when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowings.