Public finance: What does “fiscal deficit” in India's Union Budget measure? Choose the correct definition in terms of government expenditure and receipts.
General Knowledge
Indian Economy
Difficulty: Easy
Choose an option
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ATotal expenditure minus total receipts including borrowings
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BRevenue expenditure minus revenue receipts (tax + non-tax) only
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CTotal expenditure minus (revenue receipts + non-debt capital receipts), i.e., the net borrowing requirement
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DPrimary expenditure minus interest payments
Answer
Correct Answer: Total expenditure minus (revenue receipts + non-debt capital receipts), i.e., the net borrowing requirement
Explanation
DefinitionFiscal deficit = Total Expenditure − (Revenue Receipts + Non-Debt Capital Receipts). It shows the government's net borrowing requirement in a budget year.
Final AnswerTotal expenditure minus (revenue receipts + non-debt capital receipts), i.e., the net borrowing requirement