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    Question

    What does the fiscal deficit in a government budget

    signify? 
    A The amount by which total government expenditure exceeds total revenue excluding borrowings. Correct Answer Incorrect Answer
    B The amount by which total government revenue exceeds its expenditures. Correct Answer Incorrect Answer
    C The excess of capital expenditure over the total revenue receipts. Correct Answer Incorrect Answer
    D The deficiency in government income solely from tax sources. Correct Answer Incorrect Answer

    Solution

    The fiscal deficit is calculated as the difference between the total expenditure and total revenue of the government, excluding any revenue from borrowings. It essentially measures the amount the government needs to borrow to cover this deficit, indicating its overall financial health.

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