मराठी

Explain the Relation Between Government Deficit and Government Debt.

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प्रश्न

Explain the relation between government deficit and government debt.

टीपा लिहा
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उत्तर

The relation between government deficit and government debt can be explained through the following points.

1. Government deficit is the excess of total expenditure over total receipt of the government; whereas, government debt is the amount of liability, owed by the government to the public, foreign and other institutions.

2. The term government deficit implies increase in the debt of the government. In other words, if the government continues to borrow to finance deficit, it leads to additional debt.

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

APPEARS IN

एनसीईआरटी Economics Introductory Macroeconomics [English] Class 12
पाठ 5 Government Budget And The Economy
Exercises | Q 11. | पृष्ठ ८४

संबंधित प्रश्‍न

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments


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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

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Figure 1: Trends in Fiscal deficit
and Primary deficit
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  1. Fiscal deficit
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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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