Question

For the Financial Year 2019-20 the Union Government aims to restrict the fiscal deficit at
1. 3.8 percent of GDP
2. 3.0 percent of GNP
3. 3.5 percent of GDP
4. 3.0 percent of GDP

Answer 1

Correct Answer - Option 1 : 3.8 percent of GDP

The correct answer is option 1.

• For the Financial Year 2019-20, the Union Government aims to restrict the fiscal deficit at 3.8 percent of GDP.
• The government Friday came out with a roadmap to reduce the fiscal deficit, the gap between total expenditure and revenue, to 3 percent of the GDP by 2020-21, and eliminate the primary deficit.
• In BE 2018-19, the primary deficit was calculated at Rs 48,481 crore which is 0.3 percent of GDP.
• The primary deficit in RE 2018-19 is expected to be Rs 46,828 crore which works out to be 0.2 percent of the GDP.
• Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
• Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period.