Fiscal Deficit of the Government of India is closed to1. Excess of rev

1.	Fiscal Deficit of the Government of India is closed to1. Excess of revenue expenditure over revenue receipts2. Interest bearing borrowings during a financial year3. Excess of revenue and capital expenditure over tax revenue4. Accumulated public debt at the end of the financial year
Answer» Correct Answer - Option 1 : Excess of revenue expenditure over revenue receipts The correct answer is Excess of revenue expenditure over revenue receipts. Fiscal Deficit Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. A fiscal deficit situation occurs when the government’s expenditure exceeds its income. This difference is calculated both in absolute terms and also as a percentage of the Gross Domestic Product (GDP) of the country. The government describes the fiscal deficit of India as “the excess of total disbursements from the Consolidated Fund of India, excluding repayment of the debt, over total receipts into the Fund (excluding the debt receipts) during a financial year”. For the current financial year, the government expects the deficit at 6.8 per cent of GDP or Rs 15.06 lakh crore.

Fiscal Deficit of the Government of India is closed to1. Excess of revenue expenditure over revenue receipts2. Interest bearing borrowings during a financial year3. Excess of revenue and capital expenditure over tax revenue4. Accumulated public debt at the end of the financial year

Answer» Correct Answer - Option 1 : Excess of revenue expenditure over revenue receipts

The correct answer is Excess of revenue expenditure over revenue receipts.

Fiscal Deficit
- Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
- A fiscal deficit situation occurs when the government’s expenditure exceeds its income.
- This difference is calculated both in absolute terms and also as a percentage of the Gross Domestic Product (GDP) of the country.
- The government describes the fiscal deficit of India as “the excess of total disbursements from the Consolidated Fund of India, excluding repayment of the debt, over total receipts into the Fund (excluding the debt receipts) during a financial year”.
- For the current financial year, the government expects the deficit at 6.8 per cent of GDP or Rs 15.06 lakh crore.