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The fiscal deficit gives the borrowing requirement of the government. Elucidate. |
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Answer» Solution :We know , Fiscal Deficit = Total Expenditure- Revenue RECEIPTS - Non-dept creating capital receipts . It means , fiscal deficit is financed by debt-creating capital receipts , i.e., fiscal deficit is met through borrowings. So , it is RIGHTLY SAID that fiscal deficit gives the borrowing REQUIREMENT of the government . |
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