The correct answer is Total expenditure - (Revenue receipts + recovery of loans + receipts from disinvestment).

• Fiscal deficit implies=Total expenditure - (Revenue receipts + recovery of loans + receipts from disinvestment).

• Fiscal deficit = Total Expenditure – Total Revenue (excluding the borrowings)
  • The fiscal deficit is seen in all economies, while the surplus is considered a rare occurrence. A high fiscal deficit is not always seen as bad for the economy it is good if the amount is used in constructing roads, railways, airports, etc. These will be generating revenue for the government after a certain period.
• Components of Fiscal Deficit
  • The fiscal deficit is composed of two components, namely income and expenditure.  
• Components of Total Income of the government
  • These consist of two variables, which are revenue generated from various taxes such as GST, taxes from union territories, custom duties, corporation tax, etc. collected by the center, and the non-tax revenues which consist of dividends and profits, interest receipts, and other non-tax revenues.
• Components of Expenditure
  • The government expenditure consists of capital expenditure, revenue expenditure such as salary and pension payments, grants for creation of capital assets, infrastructure, healthcare, and interest payments.
  • The fiscal deficit is calculated as a percentage of the GDP (Gross Domestic Product).