From the ____________ budget, the practice of showing budget deficit has been discontinued in India.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 1997–98.
India stopped having a budget deficit starting with the budget for 1997–1998.
- According to Table 5.1's item 3, the revenue deficit for 2012–13 was 3.6% of GDP.
- Only those transactions that have an impact on the government's current revenue and expenses are included in the revenue shortfall.
- When revenue expenditures exceed revenue revenues, there is a revenue deficit. In addition to non-tax revenue, direct and indirect taxes provide revenue.
- The shortfall between all government receipts and outlays, including capital outlays, is known as the budgetary deficit.
- The RBI's net addition of treasury notes and the withdrawal of cash balances held with the RBI make up the shortfall.