Question

Assertion (A) : Fiscal deficit is greater than budgetary deficit. 

Reason (R) : Fiscal deficit is the borrowing from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.

(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer 1

(a) Fiscal deficit = Revenue receipts + non-debt creating capital receipts – Total expenditure; Budget deficit = Total receipts – Total expenditure