Multiple choice

Fiscal deficit is

  1. total income less Govt. borrowing

  2. total payments less total receipts

  3. total payments less capital receipts

  4. total expenditure less total receipts excluding borrowing

  5. none of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Fiscal deficit occurs when a government's total expenditure exceeds its total receipts, excluding borrowings. Borrowing is excluded because it is a financing item, not revenue. Option D correctly captures this economic concept.

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