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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


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

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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