Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Complete the formula:

Gross Fiscal Deficit = Total Expenditure – (Revenue receipts + ___________) ?

Options:

Capital receipts

Debt creating Capital receipts

Non-debt creating capital receipts

Recovery of loans

Correct Answer:

Non-debt creating capital receipts

Explanation:

The correct answer is Option (3) → Non-debt creating capital receipts

Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing .

Gross fiscal deficit = Total expenditure – (Revenue receipts + Non-debt creating capital receipts)