Government Budget and the Economy-Measures of Government Deficit (CBSE Class-12 Economics): Questions 1 - 8 of 8

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Question number: 1

» Government Budget and the Economy » Measures of Government Deficit

One Liner Question▾

Write in Brief

How is primary deficit calculated?

Question number: 2

» Government Budget and the Economy » Measures of Government Deficit

One Liner Question▾

Write in Brief

Can there be a fiscal deficit in a government budget without a revenue deficit? Explain.

Question number: 3

» Government Budget and the Economy » Measures of Government Deficit

Short Answer Question▾

Write in Short

What are the implications of a large revenue deficit? Give two measures to reduce this deficit.

Question number: 4

» Government Budget and the Economy » Measures of Government Deficit

One Liner Question▾

Write in Brief

Define marginal opportunity cost.

Question number: 5

» Government Budget and the Economy » Measures of Government Deficit

Appeared in Year: 2011

Essay Question▾

Describe in Detail

From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:

Revenue deficit Fiscal deficit and Primary deficit

In detail Revenue deficit Fiscal deficit and Primary deficit

( Rs. Arab)

Capital receipts net of borrowings

95

Revenue expenditure

100

Interest payments

10

Revenue receipts

80

Capital expenditure

110

Explanation

(a) Revenue Deficit = Revenue Expenditure –Revenue Receipts

100 - 80 = Rs. 20 Arab

(b) Fiscal deficit = Revenue expenditure + Capital expenditure - Revenue receipts - Capital receipts net of borrowings

=100 + 110 – 80 - 95

= Rs. 35 Arab

(C) Primary deficit = Fiscal deficit… (10 more words) …

Question number: 6

» Government Budget and the Economy » Measures of Government Deficit

Appeared in Year: 2006

Short Answer Question▾

Write in Short

In a government budget, revenue deficit is Rs. 50, 000 crores and borrowings are Rs. 75, 000 crores. How much is the fiscal deficit?

Question number: 7

» Government Budget and the Economy » Measures of Government Deficit

Essay Question▾

Describe in Detail

What is ’fiscal deficit? What are its implications?

Explanation

Fiscal deficit is defined as excess of total expenditure and total receipts excluding borrowings.

Its formula is Fiscal Deficit = Total Expenditure – Total Receipts other then borrowing and other liabilities.

The implications of fiscal deficits are: -

(1) Causes inflation

(2) Growing indebtedness

(3) Reduces future growth and development… (15 more words) …

Question number: 8

» Government Budget and the Economy » Measures of Government Deficit

Essay Question▾

Describe in Detail

What is ‘fiscal deficit’? What are its implications?

Explanation

Fiscal deficit: - It measures the total borrowing requirements of the government. It is used as a budgetary tool for understanding the budget developments in India. Fiscal deficit refers to the excess of total expenditure over total receipts Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings.

Implication of… (106 more words) …

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