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‘The Fiscal Deficit Gives the Borrowing Requirement of the Government’. Elucidate.

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प्रश्न

‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.

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उत्तर

Fiscal deficit is the excess of total expenditure over total receipts.

That is, when total government expenditure is greater that total government receipts, the government faces fiscal deficit.

Fiscal deficit is estimated as:-

Total Expenditure (revenue + capital) − Total Receipts (excluding borrowings).

Fiscal deficit gives an indication to the government about the total borrowing requirements from all sources. Fiscal deficit can be financed through domestic borrowings and/or borrowings from abroad. Greater fiscal deficit implies greater borrowings by the government.

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अध्याय 5: Government Budget And The Economy - Exercises [पृष्ठ ८३]

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एनसीईआरटी Economics Introductory Macroeconomics [English] Class 12
अध्याय 5 Government Budget And The Economy
Exercises | Q 3. | पृष्ठ ८३

संबंधित प्रश्न

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments


Distinguish between revenue deficit and fiscal deficit.


Explain 'Revenue Deficit in a Government budget? What does it indicate?


Define fiscal deficit.


Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100 (a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model. (b) If government expenditure increases by 30, what is the impact on equilibrium income? (c) If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?


Are fiscal deficits inflationary?


What do you understand by G.S.T?


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?


Which of the following factors necessitated the need for economic reforms?


A fiscal deficit is equal to borrowings. It is ______


What is relation between government deficit and government debt?


Which of the following statements are correct

Statement 1: Fiscal deficits are not necessarily inflationary; though, they are generally regarded as inflationary.

Statement 2: When the government expenditure increases and tax reduces, there is a government deficit and there will be a corresponding increase in the aggregate demand.


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


Which of the following transactions are correct about ORT?


Which of the following statements is true?


Primary deficit is borrowing requirements of government for making:


Fiscal Deficit equals:


A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.


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