The fiscal deficit is the difference between the government rsquo s total expenditure and its total ...........

The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______

Interest

Taxes

Spending

Borrowings

- Fiscal Deficit: It is the gap between the government's total expenditure and its total revenue, excluding borrowing.

- Option 1 - Interest: This is an expense for the government, but not what fiscal deficit directly accounts for when considering revenue.

- Option 2 - Taxes: These are part of the government's receipts. The fiscal deficit measurement involves all revenues, including taxes.

- Option 3 - Spending: This is part of total expenditures, not receipts.

- Option 4 - Borrowings: Borrowings are not considered when calculating fiscal deficit because they are a means to cover the deficit, not a receipt.

- Correct Answer: Option 4 - Borrowings.

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