Economics • Economic BasicsEasy
What is meant by 'Fiscal Deficit' in government budgeting?
A. The difference between total revenue receipts and total expenditure
B. The excess of total government expenditure over total receipts excluding borrowings✓ Correct Answer
C. The interest payments made by the government on past debt
D. The difference between revenue deficit and capital expenditure
💡 Solution & Explanation
Fiscal deficit measures the exact excess of total government expenditure over total receipts, excluding borrowings during a given financial year, reflecting total funding requirements. It differs from revenue deficit, which focuses strictly on current operational accounts without capital transactions.
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