Which of the following does not give Gross Fiscal Deficit ?
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : Total Expenditure - (Revenue Receipts + Capital Receipts)
Gross fiscal deficit = Total expenditure – (Revenue receipts + Non-debt creating capital receipts- correct
Gross fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad-correct
Gross Fiscal Deficit = Revenue Deficit + Capital Expenditure - non-debt creating capital receipts-correct
Total Expenditure - (Revenue Receipts + Capital Receipts) -Incorrect. Fiscal deficit should only subtract capital receipts that do not create debt.