The budget deficit means:
- A: the excess of total expenditure, including loans, net of lending over revenue receipts
- B: difference between revenue receipts and revenue expenditure
- C: difference between all receipts and all the expenditure
- D: fiscal deficit less interest payments
The correct answer is C: difference between all receipts and all the expenditure.Explanation:The budget deficit refers to the difference between all receipts (revenue) and all the expenditure in a government's budget. It represents the shortfall or deficit that occurs when a government's total expenditure exceeds its revenue receipts. This deficit can be funded through borrowing or by utilizing reserves.
Here's the breakdown of the options and why C is the correct answer:
A: The excess of total expenditure, including loans, net of lending over revenue receipts.
- This option includes loans and net lending, which are not necessarily part of the budget deficit calculation.
B: Difference between revenue receipts and revenue expenditure.
- This option only considers revenue-related figures, ignoring other sources of receipts and expenditure.
C: Difference between all receipts and all the expenditure.
- This option encompasses all receipts and total expenditure, providing a comprehensive view of the budget deficit.
D: Fiscal deficit less interest payments.
- This option excludes interest payments, which are an important component of the budget deficit calculation.
Therefore, the correct answer is C: difference between all receipts and all the expenditure.