Question

Fiscal deficit means?
1, Government expenditure minus revenue receipt
2, Public capital expenditure minus surplus of revenue receipt
3, Public expenditure minus tax and non tax revenue receipt
4, Public expenditure minus debts from source other than RBI

Answer 1

The answer to this question is option 1 which is government expenditure minus revenue receipt.

The fiscal deficit happens when the total expenditures of the government exceed the profit which it products, excluding cash from the borrowings.  

The deficit varies from debt that is the gathering of yearly deficits.

It can be considered as the positive and effective economic event.