Which of the following are to be considered while Measuring Fiscal Deficit ?
A. Capital expenditure
B. Revenue receipts
C. Debt creating receipts
D. Revenue expenditure
E. Deficit on current A/c
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : A, B and D only
Gross fiscal deficit = Total expenditure (Revenue + Capital) – (Revenue receipts + Non-debt creating capital receipts)
Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing