In what respect lsquo Budget Deficit rsquo and Fiscal Deficit rsquo are different from each other 1 ...........

Economic Affairs Public Finance and Debt Management

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In what respect ‘Budget Deficit’ and Fiscal Deficit’ are different from each other?

1. Budget Deficit is planned and is always good for an economy.

2. Fiscal Deficit is actual overrun of government expenditure and is purely a poor financial management

Codes

Only 1

Only 2

Both 1 and 2

Niether 1 nor 2

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Explanation:

Both statements are incorrect.
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.
A fiscal deficit occurs 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.