state gov Kerala PSC Degree (Common Preliminary Examination) Mock Test Series 2025 General Knowledge Economy Money and Banking
Off-budget borrowings are loans taken by the public institution which borrows on the directions of the government. In this context, consider the following statements:
1. State governments cannot resort to off-budget borrowings.
2. Higher off-budget borrowings will result in a higher fiscal deficit.
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