Question : ____________is the difference between the government's total expenditure and its total receipts, excluding borrowings.
Option 1: Credit flow
Option 2: Fiscal deficit
Option 3: Debt burden
Option 4: Market equilibrium
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Correct Answer: Fiscal deficit
Solution : The correct answer is Fiscal deficit.
The difference between the government's total revenue (taxes and non-debt capital receipts) and total expenses is known as the fiscal deficit. A persistently high budget deficit indicates overspending by the government. The government borrows money to cover its fiscal shortfall.
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