GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Primary deficit
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Budgetary deficit
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Fiscal deficit
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Revenue deficit
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Detailed explanation-1: -The majority of the fiscal deficit is financed through internal market borrowings, with a small portion coming from securities against savings, provident funds, and external debt. In the 2023 Union Budget, India’s external debt is only 1% of the total fiscal deficit, which is estimated at ₹22, 118 crore.
Detailed explanation-2: -The fiscal deficit is the difference between the total revenue and total expenditure of the government. Revenue deficit hence arises when the government’s actual net receipts is lower than the projected receipts. So, the size of fiscal deficit is always higher than revenue deficit.
Detailed explanation-3: -The combined Gross Fiscal Deficit (GFD) of the States, which increased to 4.1% of GDP in FY21, was brought down to 2.8% in FY22 PA. Given the geopolitical uncertainties, the consolidated GFD-GDP ratio for States has been budgeted at 3.4% in FY23.