What Is Twin Deficit? Explained | Taming India’s Twin Deficit | Indian Economy for UPSC CSE 2023

Опубликовано: 10 Май 2025
на канале: BYJU'S IAS

20,123

Amidst high commodity prices and increasing subsidy burden, India is facing both fiscal deficit as well as a current account deficit. The finance ministry has warned about the re-emergence of the problem of twin deficit in the Indian Economy. Besides, RBI in its ‘Monthly Economic Review’ report has highlighted these two deficits as the two key areas of concern for the Indian economy. In the backdrop of global geopolitical crisis and weakening Indian currency, twin deficit could affect the country's economy adversely.

Subscribe to "BYJU’S IAS" Channel:
👉 https://www.youtube.com/c/BYJUSIAS?su...

Subscribe to our “BYJU’S IAS Hindi” Channel:
👉 https://www.youtube.com/c/BYJUSIASHin...

Register FREE - BYJU’S National Scholarship Test (BNST) for IAS
👉 https://byjus.com/bnst-ias/?utm_sourc...

Free IAS Workshop [Limited Seats Available] - Register Now
👉 https://byjus.com/ias-workshop/?utm_s...

To take part in the Free Target Mains 2022 Program, download the App and register now! https://click.gradeup.co/Fqr0/ytIASEng

Join us on Telegram Now for all the latest updates
👉 https://t.me/BYJUSEXAMPREPIAS

Latest Videos Smart Playlist
https://docs.google.com/spreadsheets/...

👉For more details on NCERT Fundamentals Course Visit:
https://byjusexamprep.com/ncert-funda...

Top Playlist to prepare for UPSC Prelims / Civil Services Exam (CSE):

👉 Knowledge Series Latest Videos Playlist:
   • Knowledge Series | Master Playlist | ...

👉 The Hindu News Analysis Videos Playlist:
   • 'The Hindu' Newspaper Analysis | Mast...

👉 Target Prelims 2023 Daily Quiz (July) Videos Playlist:
   • Daily Quiz | Target Prelims 2023 | Ju...

👉 Weekly Current Affairs | In-depth Analysis - Explained | Latest Videos Playlist:
   • Explained | In-depth Analysis of Week...

👉 International Relations This Week | Latest Videos Playlist:
   • International Relations This Week | W...

👉 Economy This Week | Latest Videos Playlist:
   • Economy This Week | Indian Economy Ma...

A dual deficit economy or a twin deficit economy is one that has both fiscal and current account deficits. A twin deficit occurs when a country's government has both a trade deficit and a budget deficit. While a trade deficit occurs when a nation imports more than it exports, a Fiscal deficit is a condition where the government is spending more money than it takes in from taxes and other revenues excluding debt. In the long term, twin deficit may reduce the savings, depreciate the rupee and cause imbalance in the financial investments of the government for social purposes.

In this light, it is important to understand:
1. What is twin deficit?
2. What is causing twin deficit in India?
3. How will the twin deficit affect the Indian Economy?
4. What are the short-term effects of twin deficit?
5. What are the long-term effects of twin deficit?
6. How to tackle twin-deficit?
7. What measures are being taken to tackle the twin deficit in India?

Watch the entire Explained Series here:
   • Explained | In-depth Analysis of Week...

Download the PDF here: https://cdn1.byjus.com/wp-content/upl...

#BYJUSEconomyWeekly #BYJUSIasEconomy #BYJUSEconomy #EconomyThisWeekBYJU
#ByjusIAS #twindeficit #twindeficitupsc #twindeficiteconomics #twindeficitinindia #twindeficiteconomy #twindeficitprobleminindia #twindeficitchallengeupsc #twindeficitproblem #indianeconomyforupsc #indianeconomyforias #indianeconomy #byjusiasprep #cse2022 #ias #iasprelims #iasprep #iasupsc #prelims2022 #prelims2022analysis #prelims2023 #uppscprelims2022 #uppscprelims2023 #upsc #upsccivilservicesprelims #upsccse #upsccse2022 #upsccseprelims2022 #upsccseprelims2023 #upscexamprep #upscmains #upscmains2022 #upscpre2022 #upscpre2023 #upscprelims #upscprelims2022 #upscprelimsexam #upscprep #upscprepforbeginners #civilserviceexam

Happy Learning!
BYJU'S Exam Prep IAS