CA Foundation P4 · Chapter 7 · Question 10 of 15
Fiscal deficit is defined as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Total expenditure minus revenue receipts and non-debt capital receipts
Explanation
Fiscal deficit = total expenditure - (revenue receipts + non-debt creating capital receipts such as recovery of loans and disinvestment proceeds). It indicates the government's total borrowing requirement. Revenue expenditure minus revenue receipts is the revenue deficit.
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