Single correct option
Fiscal deficit is equal to total expenditure minus:
- A. Total receipts excluding borrowings
- B. Total receipts including borrowings
- C. Revenue receipts only
- D. Capital expenditure
Show answer and solution
Answer: (A) Total receipts excluding borrowings
Fiscal deficit equals total expenditure minus total receipts excluding borrowings, so it shows the government's total borrowing requirement. Revenue deficit compares revenue expenditure with revenue receipts, and primary deficit is fiscal deficit minus interest payments. Subtracting receipts including borrowings gives zero.
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