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Today General Knowledge(GK)
In the budget figures of the Government of India the difference between total expenditure and total receipts is called
A)
Budget deficit
B)
Fiscal deficit
C)
Current deficit
D)
Revenue deficit

Correct Answer : Option (B) - Fiscal deficit



Fiscal deficit refers to a situation 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. 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.

Published On : June 26, 2021
Category : Indian Economy
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