Which of the following statement is true ?
(A) loan from IMF is a revenue receipt (B) higher revenue deficit necessary leads to higher fiscal deficit
(C) Borrowing by government represents a situation of Fiscal deficit
(D) capital deficit is the excess of capital receipts over the revenue receipts.
Dear Student,
Option C: Borrowing by the government represents a situation of Fiscal deficit seems to be the correct answer.
The fiscal deficit is the difference between total revenue and total expenditure of the government. It indicates the total borrowings made by the government.
Regards
Option C: Borrowing by the government represents a situation of Fiscal deficit seems to be the correct answer.
The fiscal deficit is the difference between total revenue and total expenditure of the government. It indicates the total borrowings made by the government.
Regards