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Give the Relationship Between the Revenue Deficit and the Fiscal Deficit. - Economics

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प्रश्न

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

टीपा लिहा
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उत्तर

The relationship between the revenue deficit and the fiscal deficit can be explained through the following points:

1. Revenue deficit is the difference between government’s revenue expenditures and government’s receipts.

Revenue deficit = Revenue expenditures − Revenue receipts

On the other hand, fiscal deficit is the difference between the total expenditure and the total receipt of the government.

Fiscal deficit = Total Expenditure − Total Receipts (excluding borrowings)

2. The term ‘fiscal deficit’ is used in a broader sense than the term ‘revenue deficit’.

3. As revenue deficit increases, the proportion of fiscal deficit also increases.

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

APPEARS IN

एनसीईआरटी Economics Introductory Macroeconomics [English] Class 12
पाठ 5 Government Budget And The Economy
Exercises | Q 4 | पृष्ठ ८३

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