Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

The fiscal deficit has become a key factor to watch out for in every budget presentation. It is considered the most important marker of a government’s financial health. There can be different types of deficit in a budget depending upon the types of receipts and expenditure we take into consideration. Accordingly, there are three concepts of the deficit: Revenue deficit, Fiscal deficit and Primary deficit.

Revenue deficit is the excess of total revenue expenditure of the government over its total revenue receipts. The difference between total revenue and total expenditure of the government is termed as fiscal deficit. Fiscal deficit indicates the borrowing requirements of the government during the budget year. A fiscal deficit takes place either due to a revenue deficit or a major hike in capital expenditure. A primary deficit is defined as a fiscal deficit of the current year minus interest payments on previous borrowings.