NISM Certifications · NISM-Series-XV: Research Analyst · Economic Analysis
Which fiscal measure is defined as total government expenditure minus total receipts excluding borrowings?
This is the fiscal deficit: total expenditure minus total receipts excluding borrowings, which equals the government's borrowing requirement. Revenue deficit covers only revenue items, and primary deficit subtracts interest payments from the fiscal deficit.
- ARevenue deficit
- BPrimary deficit
- CFiscal deficitCorrect
- DCurrent account deficit
Explanation
Fiscal deficit equals total expenditure less revenue receipts and non-debt capital receipts, i.e. the amount the government must borrow. Revenue deficit compares only revenue expenditure with revenue receipts, and primary deficit is fiscal deficit less interest payments.
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