Economics • Indian EconomyEasy
What does 'Fiscal Deficit' represent in the Union Budget of India?
A. Total government expenditure minus total government revenue excluding borrowings✓ Correct Answer
B. Total revenue expenditure minus total revenue receipts
C. Interest payments made on past government borrowings
D. Total public debt held by foreign financial institutions
💡 Solution & Explanation
Fiscal deficit measures the excess of total government expenditure over total non-debt receipts, indicating the total net borrowing requirement of the government during a fiscal year. Revenue deficit specifically tracks the gap between revenue expenditure and revenue receipts, while public debt encompasses total accumulated borrowings. Budgetary concepts and deficit definitions form the backbone of Indian economy questions.
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