Question

Fiscal Deficit is equal to:

Options

• \[\text{Fiscal Deficit} - \text{Interest Payments}\]

• \[\text{Revenue Expenditure} - \text{Revenue Receipts}\]

• \[\text{Total Expenditure} - (\text{Revenue Receipts} + \text{Non-Debt Capital Receipts})\]

• \[\text{Total Expenditure} - \text{Interest Payments}\]

Answer 1

The formula is \[\text{Fiscal Deficit} = \text{Total Expenditure} - (\text{Revenue Receipts} + \text{Non-Debt Capital Receipts})\]. Only revenue receipts and non-debt capital receipts are deducted from total expenditure. Revenue Expenditure minus Revenue Receipts is the Revenue Deficit formula.