CA Foundation Exam  >  CA Foundation Videos  >  Business Economics for CA Foundation  >  Budget & Fiscal Deficits

Budget & Fiscal Deficits Video Lecture | Business Economics for CA Foundation

124 videos|191 docs|88 tests

Top Courses for CA Foundation

FAQs on Budget & Fiscal Deficits Video Lecture - Business Economics for CA Foundation

1. What is a budget deficit?
Ans. A budget deficit occurs when a government's expenses exceed its revenues in a given period. It means that the government is spending more money than it is collecting through taxes and other sources of income.
2. What is a fiscal deficit?
Ans. A fiscal deficit refers to the difference between a government's total expenditure and its total revenue (excluding borrowing) in a fiscal year. It represents the amount of money the government needs to borrow to meet its expenditure.
3. What are the consequences of budget and fiscal deficits?
Ans. Budget and fiscal deficits can have several consequences, including inflation, increased public debt, higher interest rates, reduced private investment, and reduced confidence in the economy. These deficits can also lead to a crowding-out effect, where the government's borrowing reduces the availability of funds for private borrowing.
4. How can budget and fiscal deficits be reduced?
Ans. Budget and fiscal deficits can be reduced through a combination of expenditure control and revenue enhancement measures. Governments can reduce expenditures by cutting unnecessary expenses, improving efficiency in public spending, and implementing austerity measures. They can also increase revenues by raising taxes, improving tax collection, and promoting economic growth.
5. What is the role of deficit financing in managing budget and fiscal deficits?
Ans. Deficit financing refers to the practice of the government borrowing money to cover its budget and fiscal deficits. It involves issuing government bonds or borrowing from international organizations to finance the deficit. While deficit financing can help manage immediate fiscal gaps, it also leads to an increase in public debt, which needs to be managed effectively to avoid long-term economic problems.
Explore Courses for CA Foundation exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Summary

,

shortcuts and tricks

,

Objective type Questions

,

pdf

,

Viva Questions

,

study material

,

Free

,

Exam

,

mock tests for examination

,

video lectures

,

past year papers

,

Previous Year Questions with Solutions

,

Extra Questions

,

MCQs

,

Sample Paper

,

practice quizzes

,

ppt

,

Budget & Fiscal Deficits Video Lecture | Business Economics for CA Foundation

,

Budget & Fiscal Deficits Video Lecture | Business Economics for CA Foundation

,

Budget & Fiscal Deficits Video Lecture | Business Economics for CA Foundation

,

Important questions

,

Semester Notes

;