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प्रश्न
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
उत्तर
Fiscal deficit is the excess of total expenditure over total receipts.
That is, when total government expenditure is greater that total government receipts, the government faces fiscal deficit.
Fiscal deficit is estimated as:-
Total Expenditure (revenue + capital) − Total Receipts (excluding borrowings).
Fiscal deficit gives an indication to the government about the total borrowing requirements from all sources. Fiscal deficit can be financed through domestic borrowings and/or borrowings from abroad. Greater fiscal deficit implies greater borrowings by the government.
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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.
Define fiscal deficit
Define revenue
We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
Which of the following statement is true?
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is the formula for revenue deficit?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Fiscal Deficit = Total Budget Expenditure - Total Budget Receipts (Net of borrowing)
Statement 2: Primary Deficit = Fiscal Deficit + Interest Payments.
______ are the transactions between the residents of two countries that take place due to consideration of profit.
Which of the following transactions are correct about ORT?
If India exports goods worth ₹20 crores and imports goods worth ₹30 crores, it will have a ______
Identify which of the following statements is true.
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.
