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      Question

      Which of the following best defines Fiscal Deficit ?

      A Total Expenditure – Total Receipts (excluding borrowings) Correct Answer Incorrect Answer
      B Total Revenue – Total Expenditure Correct Answer Incorrect Answer
      C Capital Receipts – Capital Expenditure Correct Answer Incorrect Answer
      D Revenue Expenditure – Revenue Receipts Correct Answer Incorrect Answer
      E Net Borrowings – Interest Payments Correct Answer Incorrect Answer

      Solution

      Explanation: Fiscal deficit = Total expenditure – (Revenue receipts + Non-debt capital receipts) . It shows the total borrowing requirement of the government for that year.

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