Economics · Fiscal Policy and Budgeting
Read the following statements regarding a budget deficit and select the appropriate option: Statement 1: A fiscal deficit is encountered when the total expenditure of the government exceeds its total revenue (including non-debt capital receipts) excluding borrowings. Statement 2: A budget deficit is faced when the total recurring revenue of the government is greater than its total expenditure in a given fiscal year.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Neither Statement 1 nor Statement 2 is correct
- 2Both Statement 1 and Statement 2 are correct
- 3Only Statement 2 is correct
- 4Only Statement 1 is correct✓
Correct answer
Only Statement 1 is correct
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