The correct answer is: C. the sum of budgetary deficit and net increase in internal and external borrowings.
Fiscal deficit is the difference between the government’s total expenditure and total revenue. It is a measure of the government’s borrowing requirement. The budgetary deficit is the difference between the government’s total expenditure and total revenue excluding net lending. Net lending is the difference between the government’s lending and borrowing. The net increase in internal and external borrowings is the difference between the government’s total borrowing and total repayments.
Therefore, the fiscal deficit is the sum of the budgetary deficit and the net increase in internal and external borrowings.
Option A is incorrect because it only considers current expenditure and current revenue. It does not take into account capital expenditure or net lending.
Option B is incorrect because it only considers borrowings from the Reserve Bank of India. It does not take into account borrowings from other sources, such as commercial banks and the public.
Option D is incorrect because it only considers the monetized deficit and the budgetary deficit. It does not take into account the net increase in internal and external borrowings.