Budget terminology: What does “budget deficit” mean in public finance (traditional Indian usage)? Identify the definition in terms of government receipts and expenditure.
General Knowledge
Indian Economy
Difficulty: Medium
Choose an option
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AExcess of revenue expenditure over revenue receipts only
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BExcess of total expenditure over total receipts including borrowings (a narrow, older concept)
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CTotal expenditure minus (revenue receipts + non-debt capital receipts)
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DTotal receipts minus total expenditure (surplus)
Answer
Correct Answer: Excess of total expenditure over total receipts including borrowings (a narrow, older concept)
Explanation
ClarificationHistorically in India, “budgetary deficit” was the excess of total expenditure over total receipts including borrowings—thus often reflecting the monetised gap. It has been supplanted by broader measures like fiscal deficit (Expenditure − [Revenue Receipts + Non-Debt Capital Receipts]).
Final AnswerExcess of total expenditure over total receipts including borrowings (a narrow, older concept)