Question

It reflects the total indebtedness of the government's budget
A. Budget deficit
B. Fiscal deficit
C. Revenue deficit
D. Capital deficit​

Answer 1

The deficit is the fiscal deficit.

• It refers to the prime difference between annual expenditure and overall receipts, typically keeping out the direct borrowings.
• It represents the considerable sum required by the government to amply fulfill its obligations. As a result, a significant fiscal deficit entails a large amount of debt.
• To minimize the deficit, steps can be considered, like possible reduction in public spending as direct subsidies, reduction in bonus disbursements,  encashment of leaves and so on.