Choose the correct one from the below expressions Fiscal deficit = Budget deficit – Government’s market borrowing and liabilities Fiscal deficit = Budget deficit + Government’s market borrowing and liabilities Fiscal deficit = Revenue expenditure – Budget receipts Fiscal deficit = Revenue expenditure + Budget receipts Options: A . &nbsp1 only B . &nbsp3 only C . &nbsp2 only D . &nbspNone of the above

Choose the correct one from the below expressions Fiscal deficit = Budget def

Question

Choose the correct one from the below expressions

Fiscal deficit = Budget deficit – Government’s market borrowing and liabilities

Fiscal deficit = Budget deficit + Government’s market borrowing and liabilities

Fiscal deficit = Revenue expenditure – Budget receipts

Fiscal deficit = Revenue expenditure + Budget receipts

Options:

A . 1 only

B . 3 only

C . 2 only

D . None of the above

Answer: Option C
Answer: (c)
Fiscal deficit is budget deficit plus borrowings and other liabilities.
Fiscal deficit = Budget deficit + Government’s market borrowing and liabilities.
The fiscal deficit situation shows whether the government is spending beyond its income. India has, unfortunately, been a country prone to constant and high fiscal deficit situations.
A high fiscal deficit implies high indebtedness of the government and a deficit above 3% in the Indian context means an alarming situation for the government finances

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