Question

In general terms, minimising the deficits are considered as a good measure but in the context of government budget which of the following types of deficits should never be equal to zero?

(a) Revenue deficit
(b) Primary deficit
(c) Fiscal deficit
(d) All of these

Answer 1

Answer:

Importance: Fiscal deficit shows the borrowing requirements of the government during the budget year. Greater fiscal deficit implies greater borrowing by the government. The extent of fiscal deficit indicates the amount of expenditure for which the government has to borrow money.

Explanation:

So,C)Fiscal deficit is the correct answer

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