Gross fiscal deficit is always . . . . . . . . than revenue deficit.

Decreases
More
Equal
Sometimes more and sometimes less

The correct answer is: B. More

Gross fiscal deficit is the difference between the government’s total expenditure and its total revenue, including both tax and non-tax revenue. Revenue deficit is the difference between the government’s total revenue and its total expenditure, excluding non-debt creating capital expenditure.

Therefore, gross fiscal deficit is always more than revenue deficit. This is because gross fiscal deficit includes all of the government’s expenditure, including non-debt creating capital expenditure, while revenue deficit only includes the government’s expenditure on revenue account.

Option A is incorrect because gross fiscal deficit does not always decrease. In fact, gross fiscal deficit can increase or decrease depending on the government’s fiscal policy.

Option C is incorrect because gross fiscal deficit is not always equal to revenue deficit. As explained above, gross fiscal deficit is always more than revenue deficit.

Option D is incorrect because gross fiscal deficit is not sometimes more and sometimes less than revenue deficit. Gross fiscal deficit is always more than revenue deficit.