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WBCS Main Examination 2023 — Paper V: Indian Constitution and Economy · Question 124 of 200

Q124
Indian EconomyPublic Finance, Budget & Taxation
Fiscal deficit in the Central Budget of India is
  1. a.total expenditure minus revenue receipts.
  2. b.total expenditure minus capital receipts.
  3. c.revenue expenditure minus revenue receipts.
  4. d.total expenditure minus total receipts excluding borrowings and other liabilities.

Answer: (D) total expenditure minus total receipts excluding borrowings and other liabilities.

Fiscal deficit = total expenditure – (revenue receipts + non-debt capital receipts), that is, total expenditure minus total receipts excluding borrowings and other liabilities; it measures the government's borrowing requirement. Revenue expenditure minus revenue receipts is the revenue deficit.

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