Q: Question: The term Fiscal Deficit in the Union Budget means?

A The difference between total expenditure and total receipts
B The difference between revenue expenditure and revenue receipts
C The excess of total expenditure over total receipts excluding borrowings
D The excess of total expenditure over total receipts including borrowings

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Answer: C

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.

Civil Services Examination (CSE)

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Q: Question: The term Fiscal Deficit in the Union Budget means?

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