False
Download Learnerz IAS app from the Play Store now! Download

$show=search/label/May%202022

 


Fiscal Deficit UPSC NOTE

SHARE:

  Why in news The year’s fiscal deficit target seems achievable despite a spike in February The Centre’s fiscal deficit, or the gap between ...

 Why in news

  • The year’s fiscal deficit target seems achievable despite a spike in February

  • The Centre’s fiscal deficit, or the gap between the Union Government’s receipts and expenditure, has widened sharply from about ₹11 lakh crore by January to ₹15 lakh crore at the end of February. 

  • This represents the deficit moving up from 63.6% of the revised target of ₹17.3 lakh crore to 86.5% within 29 days.

  • A fiscal deficit is essentially a situation where a government spends more money than it earns in a given year. 

How's it calculated?

  • It's the difference between the government's total revenue (taxes, fees, etc.).

  •  Its total expenditure (on things like infrastructure, social programs, military). 

  • We can express it as a number (the amount of money) or as a percentage of the country's Gross Domestic Product (GDP), which is the total value of goods and services produced.

Why does it happen?

There are a couple of reasons:

  • Higher spending: The government might need to spend more on things like social programs during a recession or on public projects like building bridges.

  • Lower revenue: Economic downturns can lead to lower tax income for the government.

Is it always bad?

  • Not necessarily

  • Sometimes, a little deficit spending can be a good thing, especially if the money is invested in projects that will boost the economy in the long run. 

  • However, a very high or persistent deficit can lead to problems like inflation and higher debt.

  • Fiscal Deficit = Total Expenditure – Total Revenue

COMMENTS

Name

Amritsar,1,April 2024,301,Art & Culture,11,August 2023,251,August 2024,400,Courses,7,Daily Current Affairs,51,December 2023,189,Disaster Management,2,Environment and Ecology,284,February 2024,228,Foundation Course,1,Free Class,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,296,Govt Schemes,2,GS 2,1,GS1,21,GS2,249,GS3,100,GST,1,History,11,Home,3,IAS Booklist,1,Important News,71,Indian Economy,281,Indian History,20,Indian Polity,316,International Organisation,12,International Relations,230,Invasive Plant,1,January 2024,240,July 2023,281,July 2024,375,June 2022,6,June 2023,268,June 2024,324,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,October 2023,203,October 2024,82,Places in News,2,Science & Technology,257,Science and Technology,117,September 2023,205,September 2024,336,UPSC CSE,114,UPSC Tips,3,
ltr
item
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Fiscal Deficit UPSC NOTE
Fiscal Deficit UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
https://www.learnerz.in/2024/03/fiscal-deficit-upsc-note.html
https://www.learnerz.in/
https://www.learnerz.in/
https://www.learnerz.in/2024/03/fiscal-deficit-upsc-note.html
true
4761292069385420868
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content