The fiscal deficit is the difference between
total revenue and total expenditure
total imports and total exports
total investment and total savings
total debt and total assets
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC Combined Section Officer – 2019-20
– It is calculated as Total Expenditure – (Revenue Receipts + Non-debt Capital Receipts).
– A high fiscal deficit can lead to increased government debt and potentially higher inflation.