Which of the following statement is true?

The correct answer is Option 3: Fiscal deficit is the difference between the total expenditure and total receipts (excluding borrowings)

Fiscal deficit is a shortfall in a government's income compared with its spending. It arises when the spending of the government goes beyond its income. It indicates the total borrowing requirement of the government.

Fiscal deficit = Total expenditure - Total receipts (excluding borrowing)

Primary deficit = Fiscal deficit - Interest payments 

Therefore, Fiscal deficit = Primary deficit + interest payments