Fiscal deficit in the budget means:
Revenue deficit plus the net borrowings of the government
Incorrect AnswerBudgetary deficit plus the net borrowings of the government
Correct AnswerCapital deficit plus revenue deficit
Incorrect AnswerPrimary deficit minus capital deficit
Incorrect AnswerExplanation:
A fiscal deficit is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means.
A fiscal deficit is calculated as a percentage of gross domestic product (GDP), or simply as total dollars spent in excess of income. In either case, the income figure includes only taxes and other revenues and excludes money borrowed to make up the shortfall.
![]()
By: Parvesh Mehta