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Government Budget and Economy — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsGovernment Budget and Economy4 Marks
Question
What is fiscal deficit? What are its implications?
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Answer

Fiscal deficit means the excess of total expenditure over the total receipts by the government excluding borrowings.A large fiscal deficit mean large amount of borrowings. This in turn creates burden of interest and loan repayment in the future. It may also be inflationary.

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