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Budget Deficits · Question 16 of 51

Question 16

MediumOriginal question

Which of these is NOT subtracted from total expenditure when calculating the fiscal deficit?

Options for question 16

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. FD = total expenditure − (revenue receipts + recovery of loans + disinvestment).

  2. Borrowings are what the fiscal deficit measures, so they are not subtracted.

Concept
What fiscal deficit excludes
Typical time
70 s
Your time
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The rule this testsFiscal deficit
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