Question : Borrowings are equivalent to:
Option 1: Revenue receipts

Option 2: Revenue expenditure

Option 3: Primary deficit

Option 4: Fiscal deficit

Question

Question : Borrowings are equivalent to:

Option 1: Revenue receipts

Option 2: Revenue expenditure

Option 3: Primary deficit

Option 4: Fiscal deficit

Team Careers360 · Accepted Answer

Correct Answer: Fiscal deficit

Solution : The correct answer is (d) Fiscal deficit.

Fiscal deficit refers to the difference between the government's total expenditure and its total revenue (both tax and non-tax). When the government's total expenditure exceeds its total revenue, it needs to finance the deficit by borrowing money. Therefore, borrowings are a component of the fiscal deficit.

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Question : Borrowings are equivalent to:Option 1: Revenue receipts Option 2: Revenue expenditure Option 3: Primary deficit Option 4: Fiscal deficit

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Question : Borrowings are equivalent to:
Option 1: Revenue receipts

Option 2: Revenue expenditure

Option 3: Primary deficit

Option 4: Fiscal deficit

Question : From the following data about the government budget, determine fiscal deficit.
Total receipts excluding borrowings- 40000
Revenue deficit- 5000
Capital expenditure- 45000
Revenue expenditure- 16000
Interest payments- 25% of revenue deficit.