According to a recent forecast, the government is about to face a high future loan burden and heavy interest payments. This is due to:

Low capital budget

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Low revenue expenditure

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High revenue deficit

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High revenue expenditure

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Solution

The correct option is C
High revenue deficit

A high revenue deficit implies a high future loan burden and heavy interest payments.

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Similar questions

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).

A. Revenue Expenditure = 25,000

B. Capital Receipts = 30,000

C. Capital Expenditure = 35,000

D. Revenue Receipts = 20,000

E. Interest Payments = 10,000

F. Borrowings = 20,000

Q. In a government budget, revenue deficit is

R s . 40 c r o r e s

. If revenue receipts are

R s . 90 c r o r e s

and capital receipts

R s . 60 c r o r e s

, then how much is the revenue expenditure.

In a government budget, if revenue receipts = Rs. 100 lakh, capital receipts = Rs. 50 lakh and revenue deficit = Rs. 25 lakh, how much is the revenue expenditure?

A government budget shows a primary deficit of Rs. 6,900 crore. The revenue expenditure on interest payment is Rs. 400 crore. How much is the fiscal deficit?

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According to a recent forecast, the government is about to face a high future loan burden and heavy interest payments. This is due to:

The correct option is C High revenue deficit A high revenue deficit implies a high future loan burden and heavy interest payments.

The correct option is C
High revenue deficit

A high revenue deficit implies a high future loan burden and heavy interest payments.