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QQuestion: The term Fiscal Deficit in the Union Budget means?

ID: #23820 Civil Services Examination (CSE) 102 views
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#23820Q ID
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Civil Services Examination (CSE)Topic
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  • 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 ✔ ✖
Correct Answer: Option 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.

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