Question

Kerala's economy is characterized by a high fiscal deficit. This means the state's government:

• A. Is generating more revenue than it is spending on capital projects.
• B. Has more expenditure than revenue
• C. Is saving a substantial portion of its annual income.
• D. Has a healthy balance between its income and expenses.

Answer 1

Answer:

B. Has more expenditure than revenue

• A fiscal deficit is a shortfall in a government's income compared with its spending, indicating that expenditure exceeds revenue.