Which of the following formulas is used to determine the Gross Fiscal Deficit?

Correct option is B

The correct answer is (B) Total Expenditure - (Revenue Receipts + Non-debt Creating Capital Receipts).

Explanation

Gross Fiscal Deficit indicates the borrowing requirement of the government. It is calculated as total expenditure minus revenue receipts and non-debt creating capital receipts.

Information Booster

• Purpose: Measures the shortfall in the government’s funds due to expenditure exceeding revenue and non-debt receipts.
• Formula: Total Expenditure - (Revenue Receipts + Non-debt Creating Capital Receipts).
• Related Act: The Fiscal Responsibility and Budget Management (FRBM) Act governs fiscal discipline in India.
• Ministry Responsible: Ministry of Finance, headed by Nirmala Sitharaman (2025).