[amp_mcq option1=”Excess of expenditure over revenue” option2=”Excess of revenue over expenditure” option3=”Total outstanding debt” option4=”Tax collection efficiency” correct=”option1″]
The correct answer is: a) Excess of expenditure over revenue.
The fiscal deficit is the difference between a government’s total revenue and total expenditure. A fiscal deficit occurs when a government spends more money than it takes in through taxes and other revenue sources. The fiscal deficit is a measure of a government’s financial health and can be used to assess its ability to repay its debts.
Explanation of each option:
a) Excess of expenditure over revenue: This is the correct answer. A fiscal deficit occurs when a government spends more money than it takes in through taxes and other revenue sources.
b) Excess of revenue over expenditure: This is the opposite of a fiscal deficit. It occurs when a government takes in more money through taxes and other revenue sources than it spends.
c) Total outstanding debt: This is the total amount of money that a government owes. It includes both short-term and long-term debt.
d) Tax collection efficiency: This is a measure of how well a government collects taxes. It is not a measure of the fiscal deficit.