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Which of the following statements best describes/describe Fiscal Deficit?
- a)Fresh borrowings made by the government in a financial year.
- b)Debt-making capital receipts raised by the government in a financial year.
- c)Difference between total expenditure and total non-debt making receipts of the government in a financial year.
- d)All of the above.
Correct answer is option 'D'. Can you explain this answer?
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Which of the following statements best describes/describe Fiscal Defic...
Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure in a financial year. Fiscal Deficit = Total expenditure – Total receipts (excluding borrowings). This is equal to the fresh borrowings made by the government in that financial year.
Fiscal Deficit = Revenue expenditure + Capital expenditure – (Revenue receipts + Capital receipts) = Non-debt making capital receipts.
Fiscal Deficit = Revenue expenditure + Capital expenditure – (Revenue receipts + Capital receipts) = Non-debt making capital receipts.
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Which of the following statements best describes/describe Fiscal Defic...
**Fiscal Deficit**
**Definition**
- **Fiscal Deficit** is the difference between the total expenditure of the government and its total non-debt making receipts in a financial year.
**Explanation**
- **Fresh borrowings made by the government in a financial year** contribute to the fiscal deficit. This includes loans taken by the government to finance its expenses.
- **Debt-making capital receipts raised by the government in a financial year** also add to the fiscal deficit. These are receipts that lead to an increase in government debt.
- The **difference between total expenditure and total non-debt making receipts** is a key indicator of the fiscal health of a government. A higher fiscal deficit indicates that the government is spending more than it is earning through non-debt sources.
- Therefore, **all of the above** statements accurately describe the concept of fiscal deficit.
Understanding fiscal deficit is crucial for assessing the government's financial management and economic stability. It reflects the government's ability to meet its expenses without relying heavily on borrowings, which can have long-term implications on the economy.
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Which of the following statements best describes/describe Fiscal Deficit?a)Fresh borrowings made by the government in a financial year.b)Debt-making capital receipts raised by the government in a financial year.c)Difference between total expenditure and total non-debt making receipts of the government in a financial year.d)All of the above.Correct answer is option 'D'. Can you explain this answer?
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Which of the following statements best describes/describe Fiscal Deficit?a)Fresh borrowings made by the government in a financial year.b)Debt-making capital receipts raised by the government in a financial year.c)Difference between total expenditure and total non-debt making receipts of the government in a financial year.d)All of the above.Correct answer is option 'D'. 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 Which of the following statements best describes/describe Fiscal Deficit?a)Fresh borrowings made by the government in a financial year.b)Debt-making capital receipts raised by the government in a financial year.c)Difference between total expenditure and total non-debt making receipts of the government in a financial year.d)All of the above.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements best describes/describe Fiscal Deficit?a)Fresh borrowings made by the government in a financial year.b)Debt-making capital receipts raised by the government in a financial year.c)Difference between total expenditure and total non-debt making receipts of the government in a financial year.d)All of the above.Correct answer is option 'D'. Can you explain this answer?.
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