Which of the following may be called a fiscal deficit?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Total expenditure - Total receipts other than borrowings.
- The difference between total revenue and total expenditure of the government is termed a fiscal deficit.
- It is calculated by subtracting the total income from the total expenditure and is either expressed in absolute terms or as a percentage of the GDP (Gross Domestic Product).