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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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