2023 · Q65
Fiscal deficit in the Union Budget means:
indian-polity-economyfiscal-external
- Athe difference between current expenditure and current revenue.
- Bnet increase in the borrowings of the Union Government from the Reserve Bank of India.
- Cthe sum of budgetary deficits and the net increase in internal and external borrowings.
- DNone of the above
Explanation
The fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowings. It equals the budgetary deficit plus the net increase in internal and external borrowings, and it measures the total borrowing requirement of the Union Government. Hence option C.