Attempt this previous-year question. The correct option stays hidden until you choose.
Suppose the revenue expenditure is Rs.80,000 crores and the revenue receipts of the Government are Rs.60,000 crores. The Government budget also shows borrowings of Rs.10,000 crores and interest payments of Rs.6,000 crores. Which of the following statements are correct?
I. Revenue deficit is Rs.20,000 crores.
II. Fiscal deficit is Rs.10,000 crores.
III. Primary deficit is Rs.4,000 crores.
Select the correct answer using the code given below.
Pick an option to check yourself.
• Correct Answer: D
• Revenue deficit = Revenue Expenditure - Revenue Receipts = 80,000 - 60,000 = Rs. 20,000 crores.
• Fiscal deficit equals total borrowings = Rs. 10,000 crores.
• Primary deficit = Fiscal Deficit - Interest Payments = 10,000 - 6,000 = Rs. 4,000 crores.
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