Revenue Deficit

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Revenue deficit is the difference between Revenue Receipts and Revenue Expenditure of the government. It is a measure of the government’s ability to meet its current expenditure from its own revenue. A revenue deficit indicates that the government is not generating enough revenue to meet its current expenditure and is, therefore, borrowing MoneyMoney to finance its operations.

Primary Deficit

Primary deficit is the difference between fiscal deficit and net interest payments. It is a measure of the government’s borrowing requirement for InvestmentInvestment purposes. A primary deficit indicates that the government is borrowing money to finance its investment expenditure, which may or may not be productive.

Fiscal Deficit

Fiscal deficit is the difference between total expenditure and total revenue of the government. It is a measure of the government’s borrowing requirement for both current and investment purposes. A fiscal deficit indicates that the government is borrowing money to finance its operations and investment, which may or may not be productive.

Budget Deficit

Budget deficit is the difference between total receipts and total expenditure of the government, including both revenue and capital receipts and expenditure. It is a measure of the government’s borrowing requirement for both current and capital purposes. A budget deficit indicates that the government is borrowing money to finance its operations, investment, and Capital Expenditure.

Public Debt

Public debt is the total amount of money that the government owes to its creditors. It includes both internal debt and external debt. Internal debt is the debt that the government owes to its own citizens, while external debt is the debt that the government owes to foreign creditors.

National Debt

National debt is the total amount of money that a country owes to its creditors. It includes both public debt and private debt. Public debt is the debt that the government owes, while private debt is the debt that individuals and businesses owe.

External Debt

External debt is the debt that a country owes to foreign creditors. It includes both public and private debt. Public external debt is the debt that the government owes to foreign creditors, while private external debt is the debt that individuals and businesses owe to foreign creditors.

Internal Debt

Internal debt is the debt that a country owes to its own citizens. It includes both public and private debt. Public internal debt is the debt that the government owes to its own citizens, while private internal debt is the debt that individuals and businesses owe to their own citizens.

Contingent Liabilities

Contingent liabilities are liabilities that the government may have to pay in the future, but which are not currently due. They include things like guarantees that the government has issued, and potential claims against the government.

Fiscal Responsibility and Budget Management Act (FRBM Act)

The Fiscal Responsibility and Budget Management Act (FRBM Act) is an act of the Parliament of India that was enacted in 2003. The FRBM Act sets out the fiscal responsibility and budget management framework for the central government of India. The FRBM Act aims to ensure that the central government’s fiscal deficit and public debt are kept under control.

Fiscal Responsibility Rules (FRR)

The Fiscal Responsibility Rules (FRR) are rules that were issued by the Government of India in 2004. The FRR are based on the Fiscal Responsibility and Budget Management Act (FRBM Act). The FRR set out the fiscal responsibility and budget management targets for the central government of India.

Fiscal Policy

Fiscal policy is a tool that governments use to manage the economy. Fiscal policy involves the use of government spending and TaxationTaxation to influence the level of economic activity. Fiscal policy can be used to stimulate the economy when it is in a RecessionRecession, or to restrain the economy when it is growing too quickly.

Monetary Policy

Monetary policy is a tool that central banks use to manage the economy. Monetary policy involves the use of interest rates and open market operations to influence the level of economic activity. Monetary policy can be used to stimulate the economy when it is in a recession, or to restrain the economy when it is growing too quickly.

Economic Policy

Economic policy is a set of measures that governments use to manage the economy. Economic policy can be used to achieve a variety of goals, such as economic growth, low unemployment, and low InflationInflation. Economic policy can be divided into fiscal policy, monetary policy, and other policies, such as trade policy and industrial policy.
Revenue Deficit

• What is revenue deficit?
  Revenue deficit is the difference between the government’s revenue receipts and its revenue expenditure.

• What is the formula for calculating revenue deficit?
  Revenue deficit = Revenue expenditure – Revenue receipts

• What are the causes of revenue deficit?
  The main causes of revenue deficit are:

  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies
  • Increase in interest payments

• What are the effects of revenue deficit?
  The main effects of revenue deficit are:

  • Increase in public debt
  • Increase in inflation
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in SavingsSavings

Primary Deficit

• What is primary deficit?
  Primary deficit is the difference between the government’s fiscal deficit and its interest payments.

• What is the formula for calculating primary deficit?
  Primary deficit = Fiscal deficit – Interest payments

• What are the causes of primary deficit?
  The main causes of primary deficit are:

  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies

• What are the effects of primary deficit?
  The main effects of primary deficit are:

  • Increase in public debt
  • Increase in inflation
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in savings

Fiscal Deficit

• What is fiscal deficit?
  Fiscal deficit is the difference between the government’s total expenditure and its total revenue.

• What is the formula for calculating fiscal deficit?
  Fiscal deficit = Total expenditure – Total revenue

• What are the causes of fiscal deficit?
  The main causes of fiscal deficit are:

  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies
  • Increase in interest payments

• What are the effects of fiscal deficit?
  The main effects of fiscal deficit are:

  • Increase in public debt
  • Increase in inflation
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in savings

Budget Deficit

• What is budget deficit?
  Budget deficit is the difference between the government’s total receipts and its total expenditure during a financial year.

• What is the formula for calculating budget deficit?
  Budget deficit = Total receipts – Total expenditure

• What are the causes of budget deficit?
  The main causes of budget deficit are:

  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies
  • Increase in interest payments

• What are the effects of budget deficit?
  The main effects of budget deficit are:

  • Increase in public debt
  • Increase in inflation
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in savings

Public Debt

• What is public debt?
  Public debt is the total amount of money that a government owes to its creditors.

• What are the causes of public debt?
  The main causes of public debt are:

  • Budget deficit
  • Fiscal deficit
  • Primary deficit
  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies
  • Increase in interest payments

• What are the effects of public debt?
  The main effects of public debt are:

  • Increase in interest payments
  • Decrease in government revenue
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in savings

National Debt

• What is national debt?
  National debt is the total amount of money that a country owes to its creditors.

• What are the causes of national debt?
  The main causes of national debt are:

  • Budget deficit
  • Fiscal deficit
  • Primary deficit
  • Increase in government expenditure
  • Decrease in government revenue
  • Decline in tax revenue
  • Increase in non-tax revenue
  • Increase in subsidies
  • Increase in interest payments

• What are the effects of national debt?
  The main effects of national debt are:

  • Increase in interest payments
  • Decrease in government revenue
  • Decrease in economic growth
  • Decrease in investment
  • Decrease in savings

External Debt

• What is external debt?
  External debt is the total amount of money
  Question 1

The difference between total expenditure and total revenue is called:

(A) Revenue deficit
(B) Primary deficit
(CC) Fiscal deficit
(D) Budget deficit

Question 2

The difference between total expenditure and total revenue excluding interest payments is called:

(A) Revenue deficit
(B) Primary deficit
(C) Fiscal deficit
(D) Budget deficit

Question 3

The difference between total expenditure and total revenue, including net borrowings, is called:

(A) Revenue deficit
(B) Primary deficit
(C) Fiscal deficit
(D) Budget deficit

Question 4

The total outstanding liabilities of the government, including both internal and external debt, is called:

(A) Public debt
(B) National debt
(C) External debt
(D) Internal debt

Question 5

The total amount of money that a country owes to other countries is called:

(A) Public debt
(B) National debt
(C) External debt
(D) Internal debt

Question 6

The total amount of money that a country owes to its own citizens is called:

(A) Public debt
(B) National debt
(C) External debt
(D) Internal debt

Question 7

Liabilities that are contingent on the occurrence of a future event are called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Fiscal Policy

Question 8

The Act that was enacted in 2003 to ensure fiscal discipline in India is called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Fiscal Policy

Question 9

The Rules that were framed in 2004 to implement the Fiscal Responsibility and Budget Management Act (FRBM Act) are called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Fiscal Policy

Question 10

The government’s use of taxation and spending to influence the economy is called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Fiscal Policy

Question 11

The central bank’s use of interest rates and open market operations to influence the economy is called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Monetary Policy

Question 12

The overall strategy that a government adopts to achieve its economic objectives is called:

(A) Contingent liabilities
(B) Fiscal Responsibility and Budget Management Act (FRBM Act)
(C) Fiscal Responsibility Rules (FRR)
(D) Economic Policy