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What situation would result if Government expenditure exceeds the Government revenue on Current Account?
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- Deficit budgeting
- Zero-based budgeting
- Performance-based budgeting
- Surplus budgeting
- Deficit budgeting
Correct Option: A
The excess of overall government expenditure both on capital and current account over the estimated government receipts both from tax and non-tax sources is termed as fiscal deficit. Fiscal deficit is a kind of budget deficit where government expenditure exceeds over its income during the course of a financial year.
