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Discuss the Issue of Deficit Reduction.

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प्रश्न

Discuss the issue of deficit reduction.

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उत्तर

The ways of government budget deficit reduction are the following :-

(i) Decreasing expenditure

(ii) Increasing revenue

(i) Decreasing expenditure :-

a) The expenditure of government should be decreased by making government activities more planned and effective.

b) The government can encourage private sector to undertake capital projects.

(ii) Increasing revenue :-

a) Higher taxes imply higher income earned by the government. Also, new taxes may add to the revenues of the government.

b) The government can sell shares of Public Sector Undertakings (PSU disinvestment) to increase its revenue.

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अध्याय 5: Government Budget And The Economy - Exercises [पृष्ठ ८४]

APPEARS IN

एनसीईआरटी Economics Introductory Macroeconomics [English] Class 12
अध्याय 5 Government Budget And The Economy
Exercises | Q 14. | पृष्ठ ८४

संबंधित प्रश्न

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments


Give the relationship between the revenue deficit and the fiscal deficit.


Explain the relation between government deficit and government debt.


Are fiscal deficits inflationary?


Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The Finance Minister is concerned about the rising Revenue Deficit in the budget.
Suggest anyone measure to control the rising Revenue Deficit of the government.


Fiscal deficit = ______.


The primary deficit in a government budget is ______.


S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case?


The difference between fiscal deficit and interest payment is known as ______


What is relation between government deficit and government debt?


______ are the transactions between the residents of two countries that take place due to consideration of profit. 


______ are those transactions that are undertaken to cover deficit or surplus in autonomous transactions.  


Which of the following points are related to the current alarm?


Identify the correctly matched pair of the items in Column A to those in Column B:

Column A Column B
1 Fiscal Deficit (a) Other than interest payments
2 Primary Deficit (b) Borrowings less interest payments
3 Revenue Deficit (c) Borrowings
4 Tax Deficit (d) Borrowings in government budget

Which of the following statements is true?


Fiscal Deficit equals:


How good is the system of G.S.T as compared to the old tax system?


On the basis of the given information, calculate the value of:

  1. Fiscal deficit
  2. Primary deficit
S.No. Items 2021-22
(₹ in crore)
(i) Revenue Receipts 20
(ii) Capital Expenditure 15
(iii) Revenue Deficit 10
(iv) Non-debt creating capital receipts 50% of revenue receipts
(v) Interest Payments 4

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