Multiple choice

Fiscal deficit means the difference of

  1. Public expenditure and debts from sources other than RBI

  2. Public Capital Expenditure and surplus of Revenue Account

  3. Govt. Expenditure and Revenue receipts

  4. Public Expenditure and Tax and non-tax revenue receipts
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Fiscal deficit is the gap between the government's total expenditure and its total revenue receipts (excluding money from borrowing). Option D captures this by stating it's the difference between public expenditure and tax/non-tax revenue receipts. The other options are incorrect: Option A mentions debts from sources other than RBI (irrelevant), Option B refers to capital expenditure vs revenue account surplus (not the definition), and Option C is too vague - it doesn't specify that debt creation is excluded from receipts.

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