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Q:

The difference between Revenue Receipts plus Non-debt Capital Receipts (NDCR) and total expenditure is called ______.

  • 1
    Revenue Deficit
  • 2
    Fiscal Deficit
  • 3
    Effective Revenue Deficit
  • 4
    Primary Deficit
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Answer : 2. "Fiscal Deficit"
Explanation :

1. The difference between the sum of revenue receipts and Non-Debt Capital Receipts (NDCR) and total expenditure is called fiscal deficit.

2. Fiscal deficit is an important indicator of the financial position of the government.

3. It shows how much difference there is between the current income and expenditure of the government.

4. Fiscal deficit can be influenced by many factors, including.

- Economic situation: During an economic recession, the government often increases the fiscal deficit to provide stimulus to the economy.

- Political pressure: Governments often run up fiscal deficits to raise funds for social programs.

- Military spending: Governments often run fiscal deficits to increase military spending.

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