Correct Answer: Fiscal Deficit

Solution : The correct answer is Fiscal Deficit.

A fiscal deficit is a key indicator of a government's borrowing. It represents the difference between the government's total expenditure and revenue (excluding borrowings).

In other words, it's the shortfall between what the government earns (from sources like taxes and non-debt capital receipts) and what it spends. To cover this deficit, the government often resorts to borrowing, both internal and external.