Multiple Choice Questions on A occurs when a government 39 s total expenditures exceed the revenue that it generates excluding mo........... for SSC CGL Exam Preparation

Indian Economy

General Studies (CGL)

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Indian Economy - Understanding the basics of Indian economic system

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    A ____________ occurs when a government's total expenditures exceed the revenue that it generates, excluding money from

    borrowings

    This questions was previously asked in
    SSC CGL 7 June 2019 Shift-2

    Current Account Deficit

    Incorrect Answer

    Budgetary Deficit

    Incorrect Answer

    Revenue Deficit

    Incorrect Answer

    Fiscal Deficit

    Correct Answer
    Explanation:

    - Fiscal Deficit: This is when a government's total expenditures surpass its total revenue, excluding borrowing. This is generally regarded as the indication of how much the government needs to borrow to meet its expenses.

    - Current Account Deficit: This refers to a situation where a country's total imports of goods, services, and transfers are greater than its total export revenues. It is related to the balance of payments and not directly related to government budget spending.

    - Budgetary Deficit: This is a general term that may refer to any situation where expenses exceed revenue. However, it is not the specific term describing the difference excluding borrowings.

    - Revenue Deficit: This occurs when there's a shortfall in the government's net income or revenue receipts when compared to the revenue expenditure.


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