Formula for Fiscal deficit
Fiscal deficit: Fiscal deficit is stated as the surplus of total expenditure over total receipts, apart from borrowings. Fiscal deficit = Total expenditure (Rev. Exp. + Cap. Exp.) – Total Receipts (Rev. Rec. + Cap. Rec.) apart from borrowings.
Fiscal deficit: Fiscal deficit is stated as the surplus of total expenditure over total receipts, apart from borrowings.
Fiscal deficit = Total expenditure (Rev. Exp. + Cap. Exp.) – Total Receipts
(Rev. Rec. + Cap. Rec.) apart from borrowings.
Implication of Fiscal deficit A) It raise the supply of money in the economyB) It rises financial burden for future generation.C) It is the cause of inflation.
1. Examples of command economies are: A. The United States and Japan. B. Sweden and Norway. C. Mexico and Brazil. D. Cuba and North Korea.
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