Fiscal deficit in the budget means ?
Correct answer: B. Budgetary deficits plus the net borrowings of the government
- A. Revenue deficit plus the net borrowings of the government
- B. Budgetary deficits plus the net borrowings of the government
- C. Capital deficit plus revenue deficit
- D. Primary deficit minus capital deficit
Explanation
Fiscal deficit is the budgetary deficit financed by government borrowing and other liabilities, so it is commonly expressed as budgetary deficit plus net borrowings. It shows the government's total borrowing requirement beyond its non-borrowed receipts.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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