Complete the formula: Gross Fiscal Deficit = Total Expenditure – (Revenue receipts + ___________) ? |
Capital receipts Debt creating Capital receipts Non-debt creating capital receipts Recovery of loans |
Non-debt creating capital receipts |
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) |