The fiscal deficit of Kerala indicates the difference between:

Exports and imports
Revenue and expenditure
Investment and savings
Income and taxes

The correct answer is B) Revenue and expenditure.

The fiscal deficit is the difference between a government’s total revenue and total expenditure. It is a measure of the government’s borrowing requirement. A positive fiscal deficit indicates that the government is spending more than it is earning, and is therefore borrowing money to finance the difference. A negative fiscal deficit, or budget surplus, indicates that the government is earning more than it is spending, and is therefore able to repay some of its debt.

Exports and imports are the value of goods and services that a country sells to other countries and buys from other countries, respectively. Investment and savings are the amount of money that a country invests in its economy and the amount of money that it saves, respectively. Income and taxes are the amount of money that a country earns from its citizens and businesses and the amount of money that it collects in taxes, respectively.

Of these, only revenue and expenditure are directly related to the government’s fiscal deficit. The other options are not directly related to the government’s fiscal deficit.

Exit mobile version