Question

Fiscal Deficit Is Equal to Borrowings.

Answer 1

a) False

b) True

c) Can’t say

d) Insufficient information

Answer: b) True

The fiscal deficit represents the excess of government spending over revenues except for borrowings.

Fiscal deficit = Total expenditure – Total revenue

Total revenue does not include borrowings.

Therefore, Fiscal deficit = Borrowings

Also read:

• Fiscal Deficit
• Nominal and Real GDP

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