New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    Match the following:

    src="https://www.ixambee.com/questionimage/Chapter/1707990161-38.JPG" alt="" /> Which of the pairs given above is/are correctly matched?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 3 only Correct Answer Incorrect Answer
    D All the three pairs are correct Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The revenue deficit refers to the excess of the government’s revenue expenditure over revenue receipts. Revenue deficit = Revenue expenditure – Revenue receipts. The revenue deficit includes only such transactions that affect the current income and expenditure of the government. It is the difference between the government’s total expenditure and its total receipts excluding borrowing. Gross fiscal deficit = Total expenditure – (Revenue receipts + Non-debt creating capital receipts). The fiscal deficit will have to be financed through borrowing. Thus, it indicates the total borrowing requirements of the government from all sources. The goal of measuring the primary deficit is to focus on present fiscal imbalances. It is simply the fiscal deficit minus the interest payments. Gross primary deficit = Gross fiscal deficit – Net interest liabilities.

    Practice Next

    Relevant for Exams: