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Fiscal deficit is:

ARevenue - expenditure
BMoney supply
CTotal expenditure minus total revenue (excluding borrowings)
DImports - exports
Answer & Solution
Correct answer: C. Total expenditure minus total revenue (excluding borrowings)
Fiscal Deficit = Total Expenditure - Total Revenue (excluding borrowings). Indicates government's borrowing requirement. India's FRBM Act targets <3% of GDP (often missed). Different from Revenue Deficit (revenue exp - revenue receipts) and Primary Deficit (fiscal deficit minus interest payments).
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