Question

What depicts the Total Resource Gap between the Total Government Expenditure and the Revenue generated by the Government?

• A. Surplus Finance
• B. Monetary Deficit
• C. Primary Deficit
• D. Fiscal Deficit

Answer 1

The correct option is D Fiscal Deficit

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.