When the government’s total revenue, excluding borrowings, is less than the planned expenditure, it is called:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. fiscal deficit
- A fiscal deficit is a shortfall in a government's total revenue compared with its expenditure. Fiiscal deficit is measured as a percentage of GDP or as the total money spent in excess of income, excluding borrowings.
- The fiscal deficit of India for 2020-21 was 9.3%.