Question

Which of the following statements is not true for the fiscal deficit?

• A. represents the borrowing of the government
• B. is the difference between total expenditure and total receipts of the government.
• C. is the difference between total expenditure and total receipts other than borrowing.
• D. increases the future liability of the government.

Answer 1

The correct option is B

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

Answer: (B) Is the difference between total expenditure and total receipts of the government.

Explanation: A fiscal deficit is a difference between total expenditure and total receipts of the government. It is determined at a point where the expenditure exceeds the receipts.

Also see:

• Budget Deficit
• Trade Deficit
• Primary Deficit