Question

Which one of the following statements correctly defines the term Fiscal Deficit in India?

• A. Excess of revenue expenditure over revenue receipts
• B. Excess of total expenditure over revenue receipts plus non-debt capital receipts
• C. Excess of total expenditure over total revenue
• D. Total deficit minus interest payment

Answer 1

The correct option is B Excess of total expenditure over revenue receipts plus non-debt capital receipts

Excess of total expenditure over total revenue receipts plus non-debt capital receipts. In other words, the difference between total expenditure and total revenue receipts and capital receipts but excluding borrowings and their liabilities. On the other hand, Revenue deficit means Excess of revenue expenditure over revenue receipt and Budgetary deficit means Excess of total expenditure over revenue receipts plus non-debt capital receipts.