The correct answer is: All of the above.
Revenue expenditure is the expenditure incurred by the government on the day-to-day running of the state. It includes salaries and allowances of government employees, interest payments on loans, and subsidies.
Capital expenditure is the expenditure incurred by the government on assets that have a long life, such as roads, bridges, and schools. It also includes expenditure on research and development and on the acquisition of land and buildings.
Fiscal deficit is the difference between the government’s revenue and its expenditure.
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