Fiscal Policy and Economic Indicators

The video discusses India's fiscal deficit, which exceeded the budgeted target in 2019. It explains fiscal deficit as the gap between government revenue and expenditure, often due to revenue deficit or increased capital expenditure. Government income includes revenue receipts and non-tax revenues, while expenditure covers revenue and capital expenses. The fiscal deficit is usually expressed as a percentage of GDP. The government finances this deficit through borrowings. Challenges in meeting fiscal targets include tax cuts and disinvestment issues. Experts suggest maintaining fiscal discipline and reducing the deficit to 3% of GDP.

What was India's fiscal deficit as a percentage of the budgeted target by November 2019?

• 130%

• 85%

• 115%

• 100%

What is fiscal deficit primarily caused by?

• Revenue deficit or increased capital expenditure

• Revenue surplus

• Decrease in government spending

• Increase in foreign investments

Which of the following is NOT a component of government revenue receipts?

• Income tax

• Customs duties

• Union excise duties

• Interest receipts

What percentage of GDP was the fiscal deficit target for the financial year according to the government?

• 2.5%

• 5.5%

• 3.3%

• 4.0%

What was the impact of recent corporate tax cuts on government revenue mobilization?

• 1.45 lakh crore rupees

• 1.0 lakh crore rupees

• 0.5 lakh crore rupees

• 2.0 lakh crore rupees

How does the government typically finance its fiscal deficit?

• Through borrowings

• By printing more currency

• By increasing taxes

• By reducing public spending

Which sector's disinvestment is considered crucial for maintaining fiscal balance?

• Banking

• Lurid Petroleum

• Telecom

• Agriculture

What is the ideal fiscal deficit target as suggested by the FRBM Act?

• 2% of GDP

• 3% of GDP

• 4% of GDP

• 5% of GDP

What action has the government taken to control expenses in the last quarter of the fiscal year?

• Increased foreign borrowings

• Reduced taxes

• Restricted expenses to 25% of the budget estimate

• Increased budget allocation

Who is the chief economist at the International Monetary Fund mentioned in the transcript?

• Raghuram Rajan

• Arvind Subramanian

• Aditi Niles

• Gita Gopinath