There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

(c) (i) In order to reduce the fiscal deficit, the government needs to increase its earnings and reduce its expenditure. This is done by following methods: Cut down the subsidies;...

Budget Deficit The excess of government expenditure over government income is termed as budget deficit. Budget Deficit = G – T Where, ‘G’ represents government expenditure ‘T’ represents government income Trade Deficit Trade deficit measures the excess...

(a) Fiscal deficit = Revenue receipts + non-debt creating capital receipts – Total expenditure; Budget deficit = Total receipts – Total expenditure

(c) Fiscal deficit minus Interest Payments 

(d) Deficit in taxes

(d) Fiscal deficit - Interest payments

By imposing tax on higher income group and providing subsidies to the weaker section of the society.

(d) None of the above. Budgetary Deficit = Revenue Expenditure + Capital Expenditure - (Revenue Receipts) = 25,000 + 35,000 - (20,000 + 3,000) = Rs. 50,000 crore

Government Budget is a statement showing estimated government expenditures and receipts during a financial year. Government can encourage production of selected goods and services by providing tax concessions. For example, electricity...

Revenue Receipts are the receipts which do not create liabilities nor lead to reduction in assets. Stability in the economy means keeping fluctuations in the general price level within limits....