What is fiscal deficit?

Sum of budget deficit plus borrowings

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Difference of total receipts plus borrowings

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Any of the above

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None of the above

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Solution

The correct option is A Sum of budget deficit plus borrowings
Fiscal deficit is the excess of total government expenditure (revenue expenditure + capital expenditure) over total government receipts (revenue receipts + capital other than 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.

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Similar questions

List-I (Type of budget deficit)	List-II (Measurement of deficit)
A. Revenue Deficit	$1$ . Gap between total expenditure and total receipts
B. Fiscal Deficit	$2$ . Excess of revenue expenditure over revenue receipts
C. Primary Deficit	$3$ . Fiscal deficit less interest payments
D. Budgetary Deficit	$4$ . Difference between revenue receipts plus certain non-debt capital receipts and the total expenditure including loans, net of repayments

List I (Term)	List II (Explanation)
A. Fiscal deficit	1. Excess of total expenditure over receipts
B. Budget deficit	2. Excess of revenue expenditure
C. Revenue deficit	3. Excess of total expenditure over total receipts less borrowings
D. Primary deficit	4. Excess of total expenditure over total receipts less borrowings and interest payments

Which among the following statements are correct about various budgetary deficits in India?

Codes :

Total expenditure of a government budget is Rs 75,000 crore and total receipts are Rs 45,000 crore. How much is the budget deficit?

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