Q. The excess of total expenditures over total receipts is known as _____ ?
Answer: Budget Deficit
Notes: The correct answer is "Budget Deficit." A budget deficit occurs when a government's total expenditures exceed its total revenues, excluding debt. This situation can lead to increased borrowing and is a key indicator of fiscal health. Historically, budget deficits can stimulate economic growth during recessions but may lead to long-term debt issues if persistent. For example, the U.S. federal budget deficit reached $3.1 trillion in 2020 due to COVID-19 relief spending.