A _________ occurs when a government’s total expenditures exceed the revenue that is generated, excluding money from borrowings.

Options

A. Current Account Deficit
B. Budgetary Deficit
C. Revenue Deficit
D. Fiscal Deficit

Answer

D

Explanation

Fiscal Deficit = Total Expenditure - Total Revenue(without borrowing) Current Account Deficit is when a country’s import exceeds it’s export Budgetary deficit is the sum of revenue account deficit and capital account deficit. If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit.