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Question : Gross Fiscal Deficit =

Option 1: Borrowing from the government + Borrowing from abroad

Option 2: Borrowing from the government + Borrowing from abroad+ Net borrowing at home

Option 3: Borrowing from the government + Borrowing from RBI + Borrowing from abroad

 

Option 4: Borrowing from RBI + Borrowing from abroad + Net borrowing at home


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Borrowing from RBI + Borrowing from abroad + Net borrowing at home


Solution : The correct answer is (d) Gross Fiscal Deficit = Borrowing from RBI + Borrowing from abroad + Net borrowing at home

This formula considers the borrowing from the Reserve Bank of India (RBI), borrowing from abroad, and net borrowing at home. Net borrowing at home takes into account the difference between the government's borrowing and repayments from domestic sources.

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