Question : Gross Fiscal Deficit =
Option 1: Borrowing from the government + Borrowing from abroad
Option 2: Borrowing from the government + Borrowing from abroad+ Net borrowing at home
Option 3: Borrowing from the government + Borrowing from RBI + Borrowing from abroad
Option 4: Borrowing from RBI + Borrowing from abroad + Net borrowing at home
Correct Answer: Borrowing from RBI + Borrowing from abroad + Net borrowing at home
Solution : The correct answer is (d) Gross Fiscal Deficit = Borrowing from RBI + Borrowing from abroad + Net borrowing at home
This formula considers the borrowing from the Reserve Bank of India (RBI), borrowing from abroad, and net borrowing at home. Net borrowing at home takes into account the difference between the government's borrowing and repayments from domestic sources.
