SarkariPYQ

SSC CGL 2020 PYQ — Question 47

SSC CGL - 7 March 2020 Shift 2 • General Awareness • Q47

Back to paper

A situation where the expenditure of the government exceeds its revenue is known as _____.

Show answer & explanation

Correct answer: B

Explanation

The correct answer is option 2 i.e Deficit Financing.

  • A situation where the expenditure of the government exceeds its revenue is known as Deficit Financing.

  • In the case of Deficit Financing, the government has to either borrow or look for other means to cover the expenditure.

  • As per the National Planning Commission of India, the ‘deficit financing’ term is used to denote the direct addition to gross national expenditure through budget deficits.