The excess of total government expenditure over revenue receipts and capital receipts that do not create debt is called the:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → gross fiscal deficit
Total expenditure minus revenue receipts and non-debt creating capital receipts is the gross fiscal deficit. What remains has to be borrowed.
NCERT (2026-27): Glossary: “Gross fiscal deficit – The excess of total government expenditure over revenue receipts and capital receipts that do not create debt.” |