Q.From the following data, calculate the Fiscal Deficit: Total Expenditure = ₹40,000 crore; Revenue Receipts = ₹25,000 crore; Recovery of Loans = ₹1,200 crore; Disinvestment Proceeds = ₹800 crore.

Fiscal Deficit measures the government's total borrowing requirement, using total expenditure against receipts excluding fresh borrowing. …

Step 1 — identify Non-debt Capital Receipts: Recovery of Loans and Disinvestment Proceeds are both capital receipts that are NOT fresh borrowing, so they are added together:

Step 2 — apply the Fiscal Deficit formula:

$= 40{,}000 - (25{,}000 + 2{,}000) = 40{,}000 - 27{,}000 = ₹13{,}000 \text{ crore}$ …

First sum Recovery of Loans and Disinvestment Proceeds to get Non-debt Capital Receipts; add this to Revenue Receipts; subtract that total from Total Expenditure to get the Fiscal …

Including fresh borrowings (a debt capital receipt) inside 'Non-debt Capital Receipts' — only capital receipts that do NOT create a future repayment obligation (like recovery of loans or disinvestment) count; borrowings themselves are excluded from th …