The state government’s fiscal deficit is a measure of:

The difference between revenue and expenditure
Total outstanding debt
Economic growth rate
Foreign exchange reserves

The correct answer is: a) The difference between revenue and expenditure.

The fiscal deficit is the difference between a government’s total revenue and total expenditure. A positive fiscal deficit indicates that the government is spending more money than it is taking in, while a negative fiscal deficit indicates that the government is taking in more money than it is spending.

The fiscal deficit is a measure of a government’s financial health. A large fiscal deficit can be a sign that a government is not managing its finances well, and it can lead to problems such as inflation and debt.

Option b) is incorrect because total outstanding debt is a measure of the total amount of money that a government owes. Option c) is incorrect because economic growth rate is a measure of the rate at which a country’s economy is growing. Option d) is incorrect because foreign exchange reserves are a measure of the amount of foreign currency that a country holds.

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