Question

Which of the following statements is true?

Options

• Government Borrowings from the World Bank is a Revenue Receipt.

• Higher fiscal deficit is the result of higher revenue deficit.

• The loans taken by government represents a situation of fiscal deficit.

• The excess of capital receipts over the revenue receipts is called Revenue deficit.

Answer 1

The loans taken by the government represent a situation of fiscal deficit.

Explanation:

The amount of borrowing the government must use to fulfil its expenses is referred to as the fiscal deficit.