SSC GD 2023 PYQ — Question 38

The correct answer is option 2 i.e. fiscal deficit

The difference between total revenue and total expenditure of the government is termed a fiscal deficit.

• It is an indication of the total borrowings needed by the government.

• While calculating the total revenue, borrowings are not included.

• On a general basis, the government meets fiscal deficit by borrowing money.

• While calculating, it is a way that the total borrowing requirements of the government in one financial year are equal to the fiscal deficit of that year

• Fiscal Deficit = Total Expenditure of the Government (Capital and Revenue Expenditure) – Total Income of the Government (Revenue Receipts + Recovery of Loans + Other Receipts)

• If the total expenditure of the government exceeds the total revenue and non-revenue receipts in a financial year, then that gap formed is the fiscal deficit for that financial year.

• The fiscal deficit is represented as a percentage of GDP.