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Which of the following will be part of fiscal deficit?
1. Internal debt
2. Government’s external debt
3. Securities issued to food corporation of India
4. Liability to RBI
5. Liability of Central Government to states
Select the correct answer using the codes given below:
  • a)
    1, 2, 3 and 4
  • b)
    1, 2, 4 and 5
  • c)
    1, 3, 4 and 5
  • d)
    1, 2 and 4 only
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which of the following will be part of fiscal deficit?1. Internal debt...
3 is considered as central assistance and is not considered as part of fiscal deficit
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Which of the following will be part of fiscal deficit?1. Internal debt...
Expenditure
3. External debt
4. Revenue generated through taxes

1, 2, and 3 will be part of fiscal deficit. Fiscal deficit refers to the excess of government expenditure over its revenue, which includes both internal and external borrowing. Revenue generated through taxes is not part of fiscal deficit as it is a source of government revenue.
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Community Answer
Which of the following will be part of fiscal deficit?1. Internal debt...
What about the liability of the centre to the state

Generally, which types of liability do the CG hold on its shoulder to states
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Which of the following will be part of fiscal deficit?1. Internal debt2. Government’s external debt3. Securities issued to food corporation of India4. Liability to RBI5. Liability of Central Government to statesSelect the correct answer using the codes given below:a)1, 2, 3 and 4b)1, 2, 4 and 5c)1, 3, 4 and 5d)1, 2 and 4 onlyCorrect answer is option 'D'. Can you explain this answer?
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