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Consider the following statements regarding Government borrowing.
- Government borrowing falls under both capital receipts and revenue receipts in the Budget document.
- Government borrows through the issue of government securities called G-secs and Treasury Bills.
- Bulk of the government's fiscal deficit comes from its interest obligation on past debt.
Which of the above statements is/are correct?
- a)2 only
- b)1, 2
- c)2, 3
- d)1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Government borrowing. Gove...
Government borrowing falls under both capital receipts and revenue receipts in the Budget document.
- This statement is correct. In the Budget document, government borrowing is classified under capital receipts as well as revenue receipts. Capital receipts include borrowings that are used for creating assets or increasing the capital base of the economy, while revenue receipts include borrowings used for meeting day-to-day expenses and servicing existing debt.
Government borrows through the issue of government securities called G-secs and Treasury Bills.
- This statement is correct. The government borrows by issuing government securities such as G-secs (Government Securities) and Treasury Bills. G-secs are long-term securities with maturities ranging from 5 years to 40 years, while Treasury Bills are short-term securities with maturities of up to 1 year. These securities are issued in the primary market and can be bought by individuals, banks, financial institutions, and foreign investors.
Bulk of the government's fiscal deficit comes from its interest obligation on past debt.
- This statement is correct. The fiscal deficit is the difference between the government's total expenditure and its total revenue. When the government spends more than it earns, it needs to borrow to finance the deficit. A significant portion of the government's borrowing is used to service the interest payments on past debt. This interest obligation adds to the fiscal deficit and increases the burden of debt on the government.
In summary, all three statements are correct. Government borrowing is classified under both capital receipts and revenue receipts in the Budget document. The government borrows through the issuance of government securities like G-secs and Treasury Bills. A large portion of the government's fiscal deficit arises from its interest obligation on past debt.
- This statement is correct. In the Budget document, government borrowing is classified under capital receipts as well as revenue receipts. Capital receipts include borrowings that are used for creating assets or increasing the capital base of the economy, while revenue receipts include borrowings used for meeting day-to-day expenses and servicing existing debt.
Government borrows through the issue of government securities called G-secs and Treasury Bills.
- This statement is correct. The government borrows by issuing government securities such as G-secs (Government Securities) and Treasury Bills. G-secs are long-term securities with maturities ranging from 5 years to 40 years, while Treasury Bills are short-term securities with maturities of up to 1 year. These securities are issued in the primary market and can be bought by individuals, banks, financial institutions, and foreign investors.
Bulk of the government's fiscal deficit comes from its interest obligation on past debt.
- This statement is correct. The fiscal deficit is the difference between the government's total expenditure and its total revenue. When the government spends more than it earns, it needs to borrow to finance the deficit. A significant portion of the government's borrowing is used to service the interest payments on past debt. This interest obligation adds to the fiscal deficit and increases the burden of debt on the government.
In summary, all three statements are correct. Government borrowing is classified under both capital receipts and revenue receipts in the Budget document. The government borrows through the issuance of government securities like G-secs and Treasury Bills. A large portion of the government's fiscal deficit arises from its interest obligation on past debt.
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Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Government borrowing. Government borrowing falls under both capital receipts and revenue receipts in the Budget document. Government borrows through the issue of government securities called G-secs and Treasury Bills. Bulk of the governments fiscal deficit comes from its interest obligation on past debt.Which of the above statements is/are correct?a)2 onlyb)1, 2c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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