The difference between the government's total expenditure and its total receipts excluding borrowing.

Fiscal Deficit.

The correct answer is Option (1) → Fiscal Deficit.

Fiscal Deficit represents the total shortfall in the government’s budget when total expenditure exceeds total receipts (excluding borrowings).  It shows how much the government needs to borrow to meet its expenditure.

Fiscal Deficit=Total Expenditure−(Revenue Receipts+Non-debt Capital Receipts)