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Revenue deficit in India implies that
  • a)
    the Indian Government needs to borrow in order to finance its expenses which will create capital assets
  • b)
    the Indian Government needs to borrow in order to finance its expenses which do not create capital assets
  • c)
    the Indian Government needs to borrow from the Reserve Bank of India against government securities
  • d)
    the Indian Government needs to borrow from international financial institutions
  • e)
    None of the above/More than one of the above
Correct answer is option 'B'. Can you explain this answer?
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Revenue deficit in India implies thata)the Indian Government needs to ...
A revenue deficit, not to be confused with a fiscal deficit, measures the difference between the projected amount of income and the actual amount of income. If a business or government has a revenue deficit that means its income isn’t enough to cover its basic operations i.e. day to day functions of government. To remedy a revenue deficit, a government can choose to raise tax or cut expenses. Similarly, a company with a revenue deficit can make improvements by cutting variable costs, such as materials and labor.
A fiscal deficit is a shortfall in a government’s income compared with its spending. The government that has a fiscal deficit is spending beyond its means. A government creates a fiscal deficit by spending more money than it takes in from taxes and other revenues excluding debt. The gap between income and spending is closed by government borrowing.
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Revenue deficit in India implies thata)the Indian Government needs to borrow in order to finance its expenses which will create capital assetsb)the Indian Government needs to borrow in order to finance its expenses which do not create capital assetsc)the Indian Government needs to borrow from the Reserve Bank of India against government securitiesd)the Indian Government needs to borrow from international financial institutionse)None of the above/More than one of the aboveCorrect answer is option 'B'. Can you explain this answer?
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Revenue deficit in India implies thata)the Indian Government needs to borrow in order to finance its expenses which will create capital assetsb)the Indian Government needs to borrow in order to finance its expenses which do not create capital assetsc)the Indian Government needs to borrow from the Reserve Bank of India against government securitiesd)the Indian Government needs to borrow from international financial institutionse)None of the above/More than one of the aboveCorrect answer is option 'B'. Can you explain this answer? for BPSC (Bihar) 2024 is part of BPSC (Bihar) preparation. The Question and answers have been prepared according to the BPSC (Bihar) exam syllabus. Information about Revenue deficit in India implies thata)the Indian Government needs to borrow in order to finance its expenses which will create capital assetsb)the Indian Government needs to borrow in order to finance its expenses which do not create capital assetsc)the Indian Government needs to borrow from the Reserve Bank of India against government securitiesd)the Indian Government needs to borrow from international financial institutionse)None of the above/More than one of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for BPSC (Bihar) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Revenue deficit in India implies thata)the Indian Government needs to borrow in order to finance its expenses which will create capital assetsb)the Indian Government needs to borrow in order to finance its expenses which do not create capital assetsc)the Indian Government needs to borrow from the Reserve Bank of India against government securitiesd)the Indian Government needs to borrow from international financial institutionse)None of the above/More than one of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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