Economics · Fiscal Policy
Fiscal deficit is often interpreted as a broad measure of the government's borrowing requirement in a given year. In simple terms, fiscal deficit arises when:
- 1total government expenditure exceeds total non-debt receipts✓
- 2public debt stock falls as a ratio of GDP
- 3direct tax receipts exceed indirect tax receipts
- 4capital expenditure is lower than revenue expenditure
Correct answer
total government expenditure exceeds total non-debt receipts
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