Complete the formula:
Gross Fiscal Deficit = Total Expenditure – (Revenue receipts + ___________) ?
Answer & explanation
Correct answer: option 3
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)