The correct answer is: Excess of government expenditure over revenue.
A fiscal deficit occurs when a government’s total expenditure exceeds its total revenue in a given fiscal year. This can happen for a number of reasons, such as a recession, a decrease in tax revenue, or an increase in government spending.
A fiscal deficit can be financed through a number of means, such as borrowing money, selling assets, or printing money. However, a large and persistent fiscal deficit can lead to a number of problems, such as higher interest rates, inflation, and a decrease in the value of the currency.
Excess of government revenue over expenditure is called a fiscal surplus. A balanced budget occurs when government expenditure equals revenue. Lack of financial planning can lead to a fiscal deficit, but it is not the only cause.
Here is a brief explanation of each option:
- Excess of government expenditure over revenue: This is the most common definition of a fiscal deficit. It occurs when a government spends more money than it takes in through taxes and other revenue sources.
- Excess of government revenue over expenditure: This is called a fiscal surplus. It occurs when a government takes in more money through taxes and other revenue sources than it spends.
- A balanced budget where income equals expenditure: This is a situation in which a government’s total expenditure equals its total revenue. This can happen if a government has a fiscal surplus or if it reduces its expenditure to match its revenue.
- Lack of financial planning: This can lead to a fiscal deficit, but it is not the only cause. A fiscal deficit can also occur due to economic factors, such as a recession or a decrease in tax revenue.