Which of following is a correct measure of gross fiscal deficit of the state government.
Revenue Deficit=Revenue Expenditure−Revenue Receipts. Adding capital outlays and net lending gives the standard gross-fiscal-deficit presentation, with non-debt recovery…
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Which of following is a correct measure of gross fiscal deficit of the state government.
Answer and explanation
Correct answer C
Revenue Deficit=Revenue Expenditure−Revenue Receipts. Adding capital outlays and net lending gives the standard gross-fiscal-deficit presentation, with non-debt recovery treatment embedded in net lending. Total capital disbursement can include debt repayment, which is financing rather than the deficit; the second and fourth incorrectly add selected repayments and omit capital outlays.
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UGC NET Economics