General Knowledge - Indian Economy - Discussion

Discussion :: Indian Economy - Indian Economy (Q.No.50)


Fiscal deficit in the Union Budget means

[A]. the difference between current expenditure and current revenue
[B]. net increase in Union Governments borrowings from the Reserve Bank of India
[C]. the sum of budgetary deficit and net increase in internal and external borrowings
[D]. the sum of monetized deficit and budgetary deficit

Answer: Option C


No answer description available for this question.

Raman said: (Dec 12, 2011)  
Can one please help me in this ?

Saurabh Gupta said: (Mar 11, 2013)  
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.

Investopedia: "A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy. ".

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