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A ____________ occurs when a government's total expenditures exceed the revenue that it generates, excluding money from
borrowings
Current Account Deficit
Budgetary Deficit
Revenue Deficit
Fiscal Deficit
- Fiscal Deficit: This is when a government's total expenditures surpass its total revenue, excluding borrowing. This is generally regarded as the indication of how much the government needs to borrow to meet its expenses.
- Current Account Deficit: This refers to a situation where a country's total imports of goods, services, and transfers are greater than its total export revenues. It is related to the balance of payments and not directly related to government budget spending.
- Budgetary Deficit: This is a general term that may refer to any situation where expenses exceed revenue. However, it is not the specific term describing the difference excluding borrowings.
- Revenue Deficit: This occurs when there's a shortfall in the government's net income or revenue receipts when compared to the revenue expenditure.
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