Fiscal deficit is the difference between government spending and its revenue (excluding borrowings), representing the total amount the government needs to borrow. This borrowed amount is the net increase in its liabilities, including internal and external borrowings.
Fiscal deficit in the Union Budget means :
Asked in UPSC CAPF 2023 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
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Answer: C. the sum of budgetary deficits and the net increase in internal and external borrowings.
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