[amp_mcq option1=”Higher” option2=”Lower” option3=”Same” option4=”All the above” correct=”option1″]<\/p>\n
The correct answer is (a). Fiscal deficit is always higher than revenue deficit.<\/p>\n
Fiscal deficit is the difference between the government’s total expenditure and its total revenue, excluding grants. Revenue deficit is the difference between the government’s total revenue and its total expenditure, including grants.<\/p>\n
Fiscal deficit is a measure of the government’s borrowing requirement. It is a more comprehensive measure of the government’s fiscal position than revenue deficit.<\/p>\n
Revenue deficit is a measure of the government’s ability to meet its current expenditure from its own revenue. It is a less comprehensive measure of the government’s fiscal position than fiscal deficit.<\/p>\n
The government’s fiscal deficit is financed by borrowing from the public, from the banking system, and from foreign sources. The government’s revenue deficit is financed by borrowing from the public and from the banking system.<\/p>\n
A high fiscal deficit can lead to a number of problems, including:<\/p>\n
A high revenue deficit can also lead to a number of problems, including:<\/p>\n
It is important for the government to manage its fiscal deficit and revenue deficit carefully to avoid these problems.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Higher” option2=”Lower” option3=”Same” option4=”All the above” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-417","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n