Which of the following is correct measurement of fiscal deficit in India ?
Fiscal deficit equals total expenditure minus revenue receipts and non-debt capital receipts. Excess revenue expenditure over revenue receipts is revenue deficit. Deducting…
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Which of the following is correct measurement of fiscal deficit in India ?
Answer and explanation
Correct answer B
Fiscal deficit equals total expenditure minus revenue receipts and non-debt capital receipts. Excess revenue expenditure over revenue receipts is revenue deficit. Deducting all receipts including borrowing would erase the financing gap; deducting interest payments from expenditure does not calculate fiscal deficit.
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UGC NET Economics