Which of the following statement is not true for fiscal deficit?
A fiscal deficit:

represents the borrowing of the government

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is the difference between total expenditure and total receipts of the government.

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is the difference between total expenditure and total receipts other than borrowing.

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increases the future liability of the government.

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Solution

The correct option is B is the difference between total expenditure and total receipts of the government.
A fiscal deficit refers to a situation when total expenditure exceeds the total receipts. Thus, fiscal deficit is estimated as the difference between total expenditure and total receipts of the government.

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Similar questions

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

Codes :

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

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

Find fiscal deficit, given the following information:

Items (Rs)

(i) Estimated total expenditure of the government 1,50,000

(ii) Revenue receipts 1,20,000

(iii) Non-debt capital receipts 10,000

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