The correct answer is: A. the excess of total expenditure, including loans, net of lending over revenue receipts.
A budget deficit is the amount by which a government’s spending exceeds its revenue in a given year. It is calculated by taking the total expenditure, including loans, net of lending, and subtracting the revenue receipts.
The budget deficit can be financed by borrowing, which increases the national debt. It can also be financed by printing money, which can lead to inflation.
A large budget deficit can be a sign of economic problems, such as a recession or a decline in tax revenue. It can also be a sign of government overspending.
However, a small budget deficit can be a sign of a healthy economy, as it indicates that the government is investing in infrastructure and other projects that will boost economic growth.
Here is a brief explanation of each option:
- Option A: The excess of total expenditure, including loans, net of lending over revenue receipts. This is the correct answer.
- Option B: Difference between revenue receipts and revenue expenditure. This is not the correct answer, as it does not include loans.
- Option C: Difference between all receipts and all the expenditure. This is not the correct answer, as it does not include loans.
- Option D: Fiscal deficit less interest payments. This is not the correct answer, as it does not include loans.