Economics • Indian EconomyEasy
What does the 'Fiscal Deficit' in the Union Budget of India indicate?
A. The difference between total revenue receipts and total revenue expenditure.
B. The total borrowing requirements of the government from all sources to meet its expenditures.
C. The excess of total government expenditure over total tax and non-tax receipts excluding borrowings.✓ Correct Answer
D. The net debt owed by the government to foreign central banks.
💡 Solution & Explanation
Fiscal deficit represents the total borrowing requirements of the government from all sources to finance its expenditures when total government spending exceeds total tax and non-tax receipts excluding borrowings. Definitions dealing solely with revenue receipts and revenue expenditures describe the revenue deficit rather than the fiscal deficit.
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