Advertisements
Advertisements
प्रश्न
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Explain 'Revenue Deficit in a Government budget? What does it indicate?
Give the relationship between the revenue deficit and the fiscal deficit.
We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Does public debt impose a burden? Explain.
Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.
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.
| 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?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
______ in the budget is an important measure of deficit.
______ are the transactions between the residents of two countries that take place due to consideration of profit.
If India exports goods worth ₹20 crores and imports goods worth ₹30 crores, it will have a ______
Primary deficit is borrowing requirements of government for making:
Fiscal Deficit equals:
Identify which of the following statements is true.
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
 |
 |
How good is the system of G.S.T as compared to the old tax system?
A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.
The Primary Deficit shows the borrowing requirement of the government:
If the Primary Deficit is zero, it means that:
