Economics • Indian EconomyEasy
What does the term 'Fiscal Deficit' signify in the Union Budget of India?
A. The excess of total government expenditure over total revenue receipts excluding borrowings.✓ Correct Answer
B. The difference between revenue expenditure and revenue receipts.
C. The total outstanding external debt of the central government.
D. The interest payments made by the government on past borrowings.
💡 Solution & Explanation
Fiscal deficit in the Union Budget signifies the precise excess of total government expenditure over total non-debt receipts, which includes revenue receipts plus non-debt capital receipts, thereby indicating the total net borrowing requirements of the government during a fiscal year. Revenue deficit measures solely the shortfall of current revenue receipts compared to current revenue expenditures, omitting capital investments. Fiscal indicators and macroeconomic aggregates are primary areas of study within Indian economic planning and budget analysis.
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