Question

Assertion (A): Fiscal deficit is measured in terms of borrowings.

Reason (R): External borrowings increases the Fiscal deficit.

विकल्प

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A). 

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A). 

• Assertion (A) is true, but Reason (R) is false. 

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

Explanation:

The difference between total expenditure and total receipts, excluding borrowings, is known as the fiscal deficit. It indicates the government's borrowing needs.