WBCS.LIVE practice question

Fiscal Deficit is

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Revenue Receipts + Capital Receipts – Total expenditure
  2. Budget Deficit + Government’s borrowings and liabilities
  3. Primary Deficit + Interest Payments
  4. All of the above

Correct answer and explanation

Correct answer: All of the above

Explanation: ✅ Correct Answer: D) All of the above 📚 Explanation: Fiscal deficit represents the total gap in the government's budget, indicating how much it needs to borrow. It can be calculated as Total Expenditure minus Non-debt Receipts (A). It is also equal to the sum of all government's borrowings (B) or Primary Deficit plus Interest Payments (C).