Question

Fiscal deficit in the Union Budget means ___________.

• A. Difference between current expenditure and current revenue
• B. Net Increase in Union Government's borrowings from the Reserve Bank of India
• C. The sum of budgetary deficit and net increase in internal and external borrowing
• D. The sum of monetised deficit and budgetary deficit

Answer 1

The correct option is C The sum of budgetary deficit and net increase in internal and external borrowing

The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.