Multiple choice

Fiscal-deficit is

  1. Total expenditure -Total receipts

  2. Revenue expenditure - Revenue receipts

  3. Capital expenditure - Capital receipts - Borrowings

  4. Sum of budget deficit and Govt' s market borrowings and Liabilities
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowings). It represents the total amount of borrowing the government needs to cover its expenses.

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