Define fiscal deficit

1.	Define fiscal deficit
Answer» A fiscal deficit is a gap by which government’s total expenditures exceed the government’s total generated revenue. This, however, does not include the government borrowings.Fiscal deficit = Total expenditure – Total receipts excluding borrowingsFiscal deficit indicates the amount of money that the government will need to borrow during the financial year. A greater deficit implies more borrowing by the government and the extent of the deficit indicates the amount of expense for which the money is borrowed.

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