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      Question

      What is Fiscal deficit?

      A Total receipts - total expenditure Correct Answer Incorrect Answer
      B Revenue receipts + recovered loan and other receipt - total expenditure Correct Answer Incorrect Answer
      C Revenue receipts - revenue expenditure Correct Answer Incorrect Answer
      D Revenue Receipts – Total expenditure Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (like receipts from disinvestment and recovery of loans) and the total expenditure. Fiscal Deficit is reflective of the total borrowing requirements of Government.

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