Question

Borrowing in government budget is ______.

Options

• Revenue deficit

• Fiscal deficit

• Primary deficit

• Deficit in taxes

Answer 1

Borrowing in government budget is Fiscal deficit.

Explanation:

Borrowing in the government implies a fiscal deficit. The fiscal deficit is the excess of total expenditure, i.e. revenue and capital expenditure, over the total receipts, i.e. revenue and capital receipts excluding borrowings