can fiscal deficit be more than borrowings if possible give the examples

Open in App

Solution

Dear Student,
The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.
Fiscal deficit = Total Expenditure – Total Receipts except borrowings.
This means that fiscal deficit will be always equal to borrowings of the government.
Regards

Suggest Corrections

Similar questions

Q. 'The fiscal deficit gives the borrowing requirement of the government'. Explain.

"The fiscal deficit gives the borrowing requirement of the government". Elucidate.

Revenue deficit can be managed through borrowing or disinvestment. But fiscal deficit can be managed only through borrowing. Do you agree? State reason(s) in support of your answer.

Q. The fiscal deficit in the economy will be zero if there is no provision for borrowings in the budget.

Q. In fiscal deficit, we add borrowings and other liabilities to the_______.

Join BYJU'S Learning Program