Advertisements
Advertisements
प्रश्न
Give the relationship between the revenue deficit and the fiscal deficit.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Explain 'Revenue Deficit in a Government budget? What does it indicate?
Define revenue
Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.
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?
Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.
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?
Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.
Are fiscal deficits inflationary?
Answer the following question.
In the given figure, what does the gap 'KT' represent? State any two fiscal measures to correct the situation.
The primary deficit in a government budget is ______.
Which of the following factors necessitated the need for economic reforms?
A fiscal deficit is equal to borrowings. It is ______
______ in the budget is an important measure of deficit.
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.
Which of the following points are related to the current alarm?
Which of the following statements is true?
Fiscal deficit equals:
The shape of average revenue curve in monopoly is ______
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 |
 |
 |
