question_answer

           

Borrowing in government budget is: (choose the correct alternative)

(a) Revenue deficit                               (b) Fiscal deficit

(c) Primary deficit                                (d) Deficit in taxes

Answer:

Borrowing in the government is the fiscal deficit. The fiscal deficit basically shows the borrowing requirement of a country. It is defined as the excess of government expenditure over government revenue. Hence, the correct answer is option (b).