Which of the following is the best estimate of the total borrowings by the government?

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 03 Aug, 2023 Shift 2)

Answer 1

The correct answer is Fiscal Deficit. Key Points

A fiscal deficit represents the difference between the government's total expenditure and its total revenue.
It is a key indicator of the government's borrowings and reflects the extent to which it is relying on debt to fund its spending.
Primary deficit is a narrower measure that excludes interest payments on past borrowings.
It indicates the government's borrowing needs for current spending but does not capture the burden of past debt.
Revenue receipts represent the government's income from taxes, fees, and other sources.
Money supply is a measure of the total amount of money in circulation in the economy.

Additional Information

Revenue receipts can be further classified into tax revenue and non-tax revenue.
Tax revenue is the income from taxes such as income tax, corporate tax, GST, etc.
Non-tax revenue is the income from other sources such as dividends from public sector enterprises, interest receipts, etc.
Money supply can be measured in different ways, such as M1, M2, and M3.
M1 includes currency in circulation, demand deposits, and other liquid assets.
M2 includes M1 plus savings deposits, time deposits, and other less liquid assets.
M3 includes M2 plus large time deposits and institutional money market funds.