How is 'Fiscal Deficit' defined in the context of government finance and public debt management in India?

💡 Solution & Explanation

Fiscal deficit represents the excess of total government expenditure over total revenue receipts and non-debt capital receipts, indicating the total borrowing requirement of the government from all sources during a financial year. Alternative options describe revenue deficit or other partial accounting gaps. Maintaining fiscal discipline requires keeping this deficit within sustainable limits as guided by fiscal responsibility legislation.