Fiscal deficit equals choose the correct alternative CBSE Class 12 Economics 2016

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Fiscal deficit equals : (choose the correct alternative) - CBSE Class 12 Economics 2016

(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
(-Appeared in CBSE economics class 12, 2016, Delhi, Set 1 paper)


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The correct option is (b). Fiscal deficit is the excess of total expenditure, i.e. revenue and capital expenditure over total receipts. This measure reflects total borrowings of the government during the financial year. 


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