Practicing Success
In percentage terms, the Centre's fiscal deficit at the end of February stood at 82.7 per cent of the full year budget target, mainly on account of higher expenditure. In the last financial year, the fiscal gap between the expenditure and revenue was 76 per cent of the Revised Estimate of 2020-21. In actual terms, as per the data released by the Controller General of Accounts, the deficit stood at Rs 13.16 trillion at the end of February. The total receipts of central government were 83.9 percent of the Revised Estimate of Budget 2021-22. or Rs 18.27 trillion in absolute terms. It was 88.2 per cent of the Revised Estimate of 2020-21 in the corresponding period last financial year. The government's total expenditure was at Rs 31.43 trillion or 83.4 per cent of the current year's RE. It was 81.7 per cent of Revised Estimate in the corresponding period last financial year. |
The government may spend an amount equal to the revenue it collects. What is this known as? |
Deficit budget Surplus budget Balanced budget Any of the above |
Balanced budget |
The correct answer is option 3: Balanced budget The government may spend an amount equal to the revenue it collects. This is known as a balanced budget. |