Question

Which of the following is more comprehensive?

• A. Fiscal deficit
• B. Budgetary deficit
• C. Both above are equally comprehensive
• D. None of above is comprehensive

Answer 1

The correct option is A Fiscal deficit

Fiscal deficit occurs when the government's total expenditure exceeds the revenue that it generates which excludes money from the borrowings. When expenditure exceeds revenues it is called as budget deficit. Hence, when borrowings and liabilities are added to the budget deficit we get fiscal deficit. Hence, fiscal deficit includes almost all the aspects which budget deficit also not involves. Hence, fiscal deficit is more comprehensive.