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    Question

    Which of the following best defines Fiscal Deficit ?

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

    Solution

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

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