Module: General Practice
Q46: Scenario: The Finance Minister mentions in the speech that the "Revenue Deficit" has been brought down to
1.8%. What does a Revenue Deficit of 1.8% imply for the government's finances?
✅ Correct Answer: A
It implies borrowing is channeled to assets.
A low Revenue Deficit (1.8%) implies that most borrowing (Fiscal Deficit) is used for Capital Expenditure (assets) rather than consumption (salaries). The Union Budget 2026-27 highlights this as a sign of "Quality Spending" and fiscal health.
A low Revenue Deficit (1.8%) implies that most borrowing (Fiscal Deficit) is used for Capital Expenditure (assets) rather than consumption (salaries). The Union Budget 2026-27 highlights this as a sign of "Quality Spending" and fiscal health.