Fiscal deficit can be written as revenue deficit plus capital expenditure minus

1. Start from revenue deficit, the gap on the revenue account. 2. Add capital expenditure, which also needs financing. 3. Subtract **non-debt creating capital receipts**, since those fund spending without borrowing. 4. Subtracting interest payments instead would give the primary deficit, which is the neighbouring formula and the likely confusion. _Source: syllabus Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.2.1 Measures of Government Deficit_