QQuestion: The term Fiscal Deficit in the Union Budget means?
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Explanation
Fiscal deficit reflects the gap between the government’s total expenditure and its revenue (excluding borrowings). It indicates how much the government needs to borrow to meet its expenses. A high fiscal deficit can impact inflation and interest rates, while a controlled deficit promotes economic stability. In India, fiscal deficit is a critical parameter for assessing the health of public finances and is closely monitored by policymakers and international rating agencies.
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