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Fiscal deficit in the Union Budget means

  • A.The difference between current expenditure and current revenue
  • B.Net increase in union governments borrowings from the reserve bank of india
  • C.The sum of budgetary deficit and net increase in internal and external borrowings
  • D.The sum of monetized deficit and budgetary deficit

Answer: C

It is the sum of the budgetary deficit and the net increase in internal and external borrowings.

Equivalently, the fiscal deficit is total expenditure minus total receipts other than borrowings - that is, the government's entire borrowing requirement for the year. The revenue deficit and the primary deficit are narrower measures.

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