Question

Fiscal deficit __________.

• A. measures that part of government expenditure which is financed by borrowings
• B. focuses on and measures the total resource gap, and fully reflects the impact of the fiscal operations, and indebtedness of the government
• C. is the measure of excess expenditure over the government's own income
• D. all of the above

Answer 1

The correct option is D all of the above

Fiscal deficit is the excess of total government expenditure (revenue expenditure + capital expenditure) over total government receipts (revenue receipts + capital other that borrowings) plus total borrowings of the government. It measures the borrowings of the government which government takes from central bank or public in order to fill the gap between total expenditure and total revenue.