Answer to Question #91340 in Macroeconomics for Abkaa

Question

How fish is non marketable good .It is marketed so how ?
How fiscal deficit is always greater than revenue deficit as fiscal deficit = revenue deficit + capital experenditure - capital receipts .so in case cap receipts are greater than cap exp the answer will come less than revenue deficit so how?plz answer this also .
Both fiscal and financial year starts on 1 April so how can they not be same ?

Answer 1

The price of fish is not a result of a compromise between the cost of production and the amount customers are willing to pay but non-market valuation is used to determine selling price.

Fiscal deficit is greater than revenue deficit because revenue deficit forms part of fiscal deficit i.e. Fiscal deficit=Revenue deficit +B where B=capital expenditure –capital receipts.

If B is negative, the equation becomes Fiscal deficit=revenue deficit –B, since both FD and RD are positive when B is negative Revenue deficit is greater than fiscal deficit.B is negative when capital receipts exceed capital expenditure

Fiscal refers to the accounting period set by the government for its forecasted revenue and expenditure while financial year refers to the period in which corporations earn income