Economics • Indian EconomyEasy
What does the 'Fiscal Deficit' in the Union Budget of India signify?
A. Total government revenue minus total government expenditure
B. The excess of total government expenditure over total non-debt receipts, indicating total borrowing requirements✓ Correct Answer
C. Revenue deficit plus capital receipts
D. Total foreign debt owed by the central government
💡 Solution & Explanation
The fiscal deficit in the Union Budget represents the excess of total government expenditure over total non-debt receipts, indicating the total net borrowing requirement of the government for that fiscal year. Other metrics measure distinct deficits, such as revenue deficit which focuses exclusively on current operational accounts. Budgetary terminology forms the core of Indian economic planning questions.
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