Multiple Choice Questions on A substantial increase in capital expenditure or revenue deficit leads to ........ for SSC CGL Exam Preparation

Indian Economy

General Studies (CGL)

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    A substantial increase in capital expenditure or revenue deficit leads to ______.

    This questions was previously asked in
    SSC CGL 12 June 2019 Shift-1

    Budgetary Deficit

    Incorrect Answer

    Fiscal Deficit

    Correct Answer

    Primary Deficit

    Incorrect Answer

    Revenue Deficit

    Incorrect Answer
    Explanation:

    - Budgetary Deficit: This occurs when total government expenditure exceeds total government revenue. It reflects the overall financial shortfall for a fiscal year.

    - Fiscal Deficit: This is the difference between total revenue and total expenditure of the government, including both capital and revenue expenditures. An increase in capital expenditure or revenue deficit typically contributes to the fiscal deficit.

    - Primary Deficit: This is the fiscal deficit minus interest payments on previous borrowings. It shows the government's borrowing requirements excluding interest payments.

    - Revenue Deficit: This happens when the net amount received (revenue receipts) falls short of the projected net amount to be received.

    - Correct Answer: Fiscal Deficit. It captures both capital expenditure and revenue deficits.


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