Economics · Fiscal Policy
Consider the following statements regarding revenue deficit: 1. Revenue deficit implies that government is borrowing to finance consumption expenditure. 2. Elimination of revenue deficit automatically ensures zero fiscal deficit. 3. Revenue deficit excludes grants-in-aid to states. 4. A persistent revenue deficit may reduce public sector savings. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 3 and 4 only
- 22 and 4 only
- 31, 2 and 3 only
- 41 and 4 only✓
Correct answer
1 and 4 only
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