Question

In the context of Kerala's economy, what does the term 'fiscal deficit' refer to?

• A. The difference between the government's revenue expenditure and its revenue receipts.
• B. The total amount of outstanding debt accumulated by the state government over time.
• C. The difference between the government's total expenditure and its total revenue, excluding borrowings.
• D. The gap between the state's total exports and imports of goods and services.

Answer 1

Answer:

C. The difference between the government's total expenditure and its total revenue, excluding borrowings.

• The fiscal deficit is the gap between a government's total expenditure and its total revenue, indicating the amount it needs to borrow to fund its operations.