The fiscal deficit is the excess of total expenditure over which quantity?

Total receipts excluding borrowingsCorrect answerYour answerTotal revenue receipts aloneCorrect answerYour answerTax revenue aloneCorrect answerYour answerTotal receipts including borrowingsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The fiscal deficit is total expenditure minus total receipts other than borrowings.
It therefore measures exactly how much the government must borrow in the year.
Counting borrowings as receipts would make the figure zero by construction, which is why they are excluded.

Worth noting

The primary deficit is the fiscal deficit minus interest payments — what the government would still be borrowing if it owed nothing from the past.

Concept: What the fiscal deficit measures
Typical timeTypical: 45 s
Your timeYours: —

The rule this testsThe Union Budget and the Economic Survey

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Ten questions from Indian Economy & Institutions, at your own pace.

The fiscal deficit is the excess of total expenditure over which quantity?

Explanation