The correct answer is: a) Expenditure exceeds revenue.
Deficit financing is a situation in which a government spends more money than it receives in revenue. This can be done by borrowing money, printing money, or using other means. Deficit financing can be used to stimulate the economy, finance government programs, or pay off debt.
In Assam’s budgets, deficit financing has been used to finance a number of programs, including infrastructure development, education, and healthcare. Deficit financing has also been used to pay off debt.
Deficit financing can be a risky strategy, as it can lead to higher levels of debt and inflation. However, it can also be a necessary tool for governments to use to stimulate the economy and finance important programs.
Here is a brief explanation of each option:
- Option a: Expenditure exceeds revenue. This is the correct answer. Deficit financing occurs when a government spends more money than it receives in revenue.
- Option b: The state is achieving fiscal surplus. This is not the correct answer. A fiscal surplus occurs when a government receives more revenue than it spends.
- Option c: Tax collection is efficient. This is not the correct answer. Tax collection efficiency is a measure of how well a government collects taxes. It is not related to deficit financing.
- Option d: Public debt is under control. This is not the correct answer. Public debt is the total amount of money that a government owes. It is not related to deficit financing.