Question

In comparison to revenue deficit, the size of fiscal deficit is always _____.

• A. higher
• B. smaller
• C. similar
• D. uncertain

Answer 1

The correct option is A higher

The fiscal deficit is the difference between the total revenue and total expenditure of the government. Revenue deficit hence arises when the government's actual net receipts is lower than the projected receipts. So, the size of fiscal deficit is always higher than revenue deficit.