Which one of the following is the correct definition of budget deficit ........

Indian Economic System(BPSC) Budgeting and Fiscal policy

Which one of the following is the correct definition of budget deficit?

Difference between receipts and expenditure of the government in the revenue account.

Difference between receipts and expenditure in the capital account

Sum total of the net addition to Treasury bills issued by the Government and dawn from its cash balance held with the RBI

Difference between government expenditure and net lending on the one hand and current revenue and receipts on the other

छोटे Courses बड़े Results

Master Budgeting and Fiscal policy

Prepare through Micro-courses

Try Now

Explanation:

A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.
The causes of a budget deficit are both simple and complex. At its most rudimentary level of analysis, a budget deficit is caused when a government spends more than it collects in taxes. Reducing tax rates may also cause a deficit, if spending isn't reduced to account for the decrease in revenue.