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SSC MTS 2022 PYQ — Question 33

SSC MTS - 25 July 2022 - Shift 3 • General Awareness • Q33

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______ is the difference between the government’s total expenditure and its total receipts, excluding borrowings.

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Correct answer: B

Explanation

The correct answer is Option 2 i.e. Fiscal deficit.

  • A fiscal deficit is a difference between a government's total revenue and expenses in a given fiscal year.
  • It indicates the extent to which a government relies on borrowing to finance its spending.
  • A fiscal deficit can be funded by issuing government bonds, increasing taxes, or running down foreign exchange reserves.