The excess of total expenditure of Government over its total receipts,

The excess of total expenditure of Government over its total receipts, excluding borrowings, is known as

Primary deficit

Fiscal deficit

Current deficit

Capital deficit

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This question was previously asked in

UPSC CDS-1 – 2021

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The correct answer is B) Fiscal deficit.

Fiscal deficit is defined as the difference between the government’s total expenditure and its total receipts, excluding borrowings. It indicates the total borrowing requirement of the government.

Primary deficit is calculated as fiscal deficit minus interest payments. Current deficit and Capital deficit are not standard terms for the overall deficit measure described; government finances are typically divided into Revenue account (leading to Revenue deficit) and Capital account (leading to Capital deficit), and Fiscal deficit combines these, representing the total gap covered by borrowing.

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