Government Budget and the Economy-Measures of Government Deficit [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 1 - 8 of 8

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Question 1

Write in Brief One Liner▾

How is primary deficit calculated?

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Question 2

Write in Brief One Liner▾

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

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Question 3

Write in Short Short Answer▾

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

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Question 4

Write in Brief One Liner▾

Define marginal opportunity cost.

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Question 5

Appeared in Year: 2011

Describe in Detail Subjective▾

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

In Detail Revenue Deficit Fiscal Deficit and Primary Deficit
(₹ Arab)
Capital receipts net of borrowings95
Revenue expenditure100
Interest payments10
Revenue receipts80
Capital expenditure110
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Explanation

(a) Revenue Deficit = Revenue Expenditure – Revenue Receipts

100 - 80 = Rs 20 Arab

(b) Fiscal deficit = Revenue expenditure + Capital expenditure - Revenue r…

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Question 6

Appeared in Year: 2006

Write in Short Short Answer▾

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

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Question 7

Describe in Detail Subjective▾

What is fiscal deficit? What are its implications?

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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 implicati…

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Question 8

Describe in Detail Subjective▾

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

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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 fiscal deficit is giv…

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