In estimating the budgetary deficit the official approach in India is to exclude
(A) long term borrowing from the market
(B) borrowings from the Reserve Bank of India
(C) drawing down of the cash balance
(D) borrowing from Reserve Bank in the form of ways and means advance
Correct Answer : drawing down of the cash balance
Question Asked : SSC CPO Sub-Inspector Exam 2003
Explanation : Budgetary Deficit is the difference between all receipts and expenditure of the government, on both revenue and capital account. This difference is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.
....Read more
Useful Quotations for : UPSC, State PSC, IBPS, SSC, Railway, NDA, Police Exams
Like The Facebook Page
CurrentGK for
Current Affairs, Latest GK &
Employment News
Tags : Agriculture Expenditure Income Industry Policies & Importance
