The correct answer is: A shortfall of revenue over expenditure.
Fiscal deficit is the difference between a government’s total revenue and total expenditure during a particular financial year. A fiscal deficit occurs when a government’s expenditure exceeds its revenue. This can happen for a number of reasons, such as a recession, a decrease in tax revenue, or an increase in government spending.
A fiscal deficit can be financed through a number of means, such as borrowing from the public, selling government assets, or printing money. However, a large and persistent fiscal deficit can be a sign of economic problems and can lead to inflation.
The other options are incorrect because:
- A surplus of revenue over expenditure is called a fiscal surplus.
- A balance between revenue and expenditure is called a balanced budget.
- Total outstanding liabilities is the total amount of money that a government owes.