In the budget figures of the Government of India, fiscal deficit is Options: A . &nbsprevenue expenditure – revenue receipts B . &nbsptotal expenditure – total receipts C . &nbspcapital expenditure – capital receipts + market borrowings D . &nbspsum of budget deficit and Government’s market borrowings and liabilities

In the budget figures of the Government of India, fiscal deficit is

Question

In the budget figures of the Government of India, fiscal deficit is

Options:

A . revenue expenditure – revenue receipts

B . total expenditure – total receipts

C . capital expenditure – capital receipts + market borrowings

D . sum of budget deficit and Government’s market borrowings and liabilities

Answer: Option D
Answer: (d)
The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing).
The elements of the fiscal deficit are
the revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and
capital expenditure.
The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks).

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