The Budget deficit means:

The budget deficit refers to the difference between the government's total receipts and its total expenditure in a given fiscal year. It is an important indicator of a country's financial health and is used to measure the gap between the government's income and its spending. The correct answer to this question is option 'C', which states that the budget deficit is the difference between all receipts and all expenditures.

Explanation:

To understand the concept of the budget deficit, let's break it down into its components:

All Receipts:
- The term "all receipts" refers to the total income or revenue received by the government during a fiscal year. This includes tax revenue, non-tax revenue, grants, and other sources of income.

All Expenditures:
- "All expenditures" represent the total spending by the government during a fiscal year. This includes both revenue expenditure and capital expenditure.

Difference between all receipts and all expenditures:
- The budget deficit is calculated by subtracting the total expenditures from the total receipts. If the result is positive, it indicates a budget surplus, meaning that the government's income is higher than its spending. On the other hand, if the result is negative, it implies a budget deficit, meaning that the government's spending exceeds its income.

Significance of the Budget Deficit:
- The budget deficit reflects the government's borrowing requirements to finance its expenditure. A budget deficit indicates that the government needs to borrow money by issuing treasury bills, bonds, or other forms of debt instruments. This borrowing increases the country's overall debt burden.

- A persistent budget deficit can have several implications. It can lead to an increase in public debt, which may result in higher interest payments and reduced fiscal flexibility. A large budget deficit can also lead to inflationary pressures and currency devaluation if the government resorts to printing more money to finance its deficit.

- Therefore, it is essential for governments to manage their budget deficits effectively to maintain fiscal discipline and ensure sustainable economic growth.

In conclusion, the budget deficit represents the difference between all receipts and all expenditures of the government during a fiscal year. It is a key indicator of a country's financial health and has significant implications for its economic stability and growth.