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Government Budget and Economy — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsGovernment Budget and Economy3 Marks
Question
Can there be a fiscal deficit without a revenue deficit?
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Answer

Yes, there can be a fiscal deficit without a case of revenue deficit. This situation can arise when the capital expenditure of the budget exceed the capital receipts other than borrowings. In other words, when capital budget deficit exceeds revenue budget surplus.

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