CUET Commerce Exam > CUET Commerce Questions > In the 2024-25 Union Budget, what fiscal defi...
Start Learning for Free
In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?
- a)3% of GDP
- b)4.5% of GDP
- c)5% of GDP
- d)6% of GDP
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
In the 2024-25 Union Budget, what fiscal deficit target did the govern...
The government set an ambitious target to reduce the fiscal deficit to 4.5% of GDP by 2025-26, down from 4.9% in 2024-25. Achieving this target is crucial for improving the debt-GDP ratio and ensuring economic stability, particularly with projected nominal GDP growth rates in the coming years.
Most Upvoted Answer
In the 2024-25 Union Budget, what fiscal deficit target did the govern...
Understanding the Fiscal Deficit Target for 2025-26
The fiscal deficit target set by the government in the 2024-25 Union Budget is a crucial aspect of India's economic strategy.
What is Fiscal Deficit?
- Fiscal deficit occurs when a government's total expenditures exceed its total revenues, excluding money from borrowings.
- It is expressed as a percentage of GDP, indicating the extent of a country's financial health.
Target for 2025-26
- The government has set the fiscal deficit target for 2025-26 at 4.5% of GDP.
- This target is part of a broader plan aimed at fiscal consolidation while ensuring sustainable economic growth.
Importance of the 4.5% Target
- Achieving a fiscal deficit of 4.5% is seen as a balancing act that allows for necessary public spending while maintaining investor confidence.
- It aligns with the government's objective to reduce the fiscal deficit progressively, moving towards a more sustainable level.
Context and Implications
- The target reflects the government's commitment to fiscal discipline, especially in the wake of increased spending during economic recovery phases.
- Setting a clear target helps in planning and implementing policies that encourage growth while managing national debt.
Conclusion
- The fiscal deficit target of 4.5% of GDP for 2025-26 is pivotal as India continues to navigate economic challenges and opportunities.
- Achieving this target will require careful management of expenditures and revenues, ensuring long-term economic stability.
The fiscal deficit target set by the government in the 2024-25 Union Budget is a crucial aspect of India's economic strategy.
What is Fiscal Deficit?
- Fiscal deficit occurs when a government's total expenditures exceed its total revenues, excluding money from borrowings.
- It is expressed as a percentage of GDP, indicating the extent of a country's financial health.
Target for 2025-26
- The government has set the fiscal deficit target for 2025-26 at 4.5% of GDP.
- This target is part of a broader plan aimed at fiscal consolidation while ensuring sustainable economic growth.
Importance of the 4.5% Target
- Achieving a fiscal deficit of 4.5% is seen as a balancing act that allows for necessary public spending while maintaining investor confidence.
- It aligns with the government's objective to reduce the fiscal deficit progressively, moving towards a more sustainable level.
Context and Implications
- The target reflects the government's commitment to fiscal discipline, especially in the wake of increased spending during economic recovery phases.
- Setting a clear target helps in planning and implementing policies that encourage growth while managing national debt.
Conclusion
- The fiscal deficit target of 4.5% of GDP for 2025-26 is pivotal as India continues to navigate economic challenges and opportunities.
- Achieving this target will require careful management of expenditures and revenues, ensuring long-term economic stability.
|
Explore Courses for CUET Commerce exam
|
|
Top Courses for CUET CommerceView all
Question Description
In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? for CUET Commerce 2025 is part of CUET Commerce preparation. The Question and answers have been prepared according to the CUET Commerce exam syllabus. Information about In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CUET Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer?.
In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? for CUET Commerce 2025 is part of CUET Commerce preparation. The Question and answers have been prepared according to the CUET Commerce exam syllabus. Information about In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CUET Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer?.
Solutions for In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CUET Commerce.
Download more important topics, notes, lectures and mock test series for CUET Commerce Exam by signing up for free.
Here you can find the meaning of In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the 2024-25 Union Budget, what fiscal deficit target did the government set for 2025-26?a) 3% of GDPb) 4.5% of GDPc) 5% of GDPd) 6% of GDPCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CUET Commerce tests.
|
|
Explore Courses for CUET Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup