Practicing Success
Fiscal deficit means : |
Capital Receipts - Revenue Expenditure Total Receipts - Revenue Expenditure Total Expenditure - (Revenue Receipts + Debt creating Capital Receipts) Total Expenditure - (Revenue Receipts +Non-Debt creating Capital Receipts) |
Total Expenditure - (Revenue Receipts +Non-Debt creating Capital Receipts) |
The correct answer is option (4) : Total Expenditure - (Revenue Receipts +Non-Debt creating Capital Receipts) Fiscal Deficit: 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) The fiscal deficit will have to be financed through borrowing. Thus, it indicates the total borrowing requirements of the government from all sources. |