Budget terminology: What does “budget deficit” mean in public finance (traditional Indian usage)? Identify the definition in terms of government receipts and expenditure.

Difficulty: Medium

• Excess of revenue expenditure over revenue receipts only
• Excess of total expenditure over total receipts including borrowings (a narrow, older concept)
• Total expenditure minus (revenue receipts + non-debt capital receipts)
• Total receipts minus total expenditure (surplus)