Practicing Success
The Government Budget having a revenue deficit can be financed by : _____________. A. Borrowings B. Tax Revenue C. Disinvestment D. Indirect taxes Choose the correct answer from the options given below : |
A and B only D and C only A and C only B and D only |
A and C only |
The correct answer is option (3) : A and C only
Therefore, borrowing and disinvestment are the two main options for financing a government budget with a revenue deficit. These methods essentially provide the government with additional funds to cover the shortfall between revenue and expenditure. |