(A) Performance budget
Unlike the traditional line item budget, a performance budget reflects the goal/objectives of the organization and spells out performance targets. These targets are sought to be achieved through a strategy(s). A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. However, performance budgeting has a limitation – It is not easy to arrive at standard unit costs especially in social programmes which require a multi-pronged approach.
Revenue deficit
Revenue deficit is the gap between the consumption expenditure (revenue expenditure) of the Government (Union or the State Governments) and its current revenues (revenue receipts). It also indicates the extent to which the government has borrowed to finance the current expenditure. Revenue receipts consist of tax revenues and non-tax revenues. When the ‘net amount received’ (revenues less expenditures) falls short of the ‘projected net amount to be received’ (i.e. what is actually received and what was expected). This occurs when the actual amount of revenue received and/or the actual amount of expenditures do not correspond with predicted revenue and expenditure figures.
(C) Quantitative Easing
Quantitative Easing (QE) is an unconventional monetary policy used by central banks to stimulate the economy by supplying excess liquidity and bringing interest rates close to zero. To carry out QE central banks create money by buying securities, such as government bonds, from banks. Such measures were taken by American Fed Bank and European banks during the time of slowdown.
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