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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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संबंधित प्रश्न
Distinguish between revenue deficit and fiscal deficit.
Define fiscal deficit.
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.
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.
Explain the relation between government deficit and government debt.
Does public debt impose a burden? Explain.
Are fiscal deficits inflationary?
Discuss the issue of deficit reduction.
Fiscal deficit = ______.
Which of the following factors necessitated the need for economic reforms?
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.
Fiscal Deficit equals:
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 |
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A large amount of fiscal deficit proves to be counter productive. Give any two reasons in support of this statement.
