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प्रश्न
Discuss the issue of deficit reduction.
उत्तर
The ways of government budget deficit reduction are the following :-
(i) Decreasing expenditure
(ii) Increasing revenue
(i) Decreasing expenditure :-
a) The expenditure of government should be decreased by making government activities more planned and effective.
b) The government can encourage private sector to undertake capital projects.
(ii) Increasing revenue :-
a) Higher taxes imply higher income earned by the government. Also, new taxes may add to the revenues of the government.
b) The government can sell shares of Public Sector Undertakings (PSU disinvestment) to increase its revenue.
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संबंधित प्रश्न
Fiscal deficit equals :
(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
Distinguish between revenue deficit and fiscal deficit.
Explain 'Revenue Deficit in a Government budget? What does it indicate?
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.
Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.
Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.
Are fiscal deficits inflationary?
What do you understand by G.S.T?
Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The Finance Minister is concerned about the rising Revenue Deficit in the budget.
Suggest anyone measure to control the rising Revenue Deficit of the government.
Fiscal deficit = ______.
Which of the following factors necessitated the need for economic reforms?
A fiscal deficit is equal to borrowings. It is ______
The difference between fiscal deficit and interest payment is known as ______
Primary deficit is borrowing requirements of government for making:
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.
