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UPSC 1999: Assertion (A): Fiscal deficit is greater than budgetary deficit. Reason (R): Fiscal deficit is the borrowings from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.
(a)Both A and R are true, and R is the correct explanation of A
(b)Both A and R are true, but R is not a correct explanation of A
(c)A is true, but R is false
(d)A is false, but R is true
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Not attemptedCorrect Answer: (a) Both A and R are true, and R is the correct explanation of A
Budgetary deficit is simply the excess of total expenditure over total revenue, whereas fiscal deficit also adds all borrowings and other liabilities; therefore fiscal deficit is numerically larger than budgetary deficit, and the definition given in the Reason correctly explains the Assertion. ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1999-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1999 Indian Economy question?▼
The correct answer is option (a): Both A and R are true, and R is the correct explanation of A. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1999, GS Paper 1, as Question 100. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Fiscal Policy & Budget?▼
UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.