Consider the following statements in the context of Indian Public Finance:
1. The fiscal deficit is the excess of total budget expenditure over total budget receipts including borrowings during a fiscal year
2. The upward trend in the ratio of Fiscal deficit to GDP has an adverse effect on private investment.
Which of the statements given above is/are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2