Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores.

Which of the following statements are correct?
I. Revenue deficit is ₹ 20,000 crores.
II. Fiscal deficit is ₹ 10,000 crores.
III. Primary deficit is ₹ 4,000 crores.

Select the correct answer using the code given below.

Question

Apedia · Accepted Answer

Correct Answer: I, II and III.

Explanation: All statements are correct. Revenue Deficit equals Revenue Expenditure minus Revenue Receipts which is 80,000 minus 60,000 equals 20,000. Fiscal Deficit equals Total Borrowings which is 10,000. Primary Deficit equals Fiscal Deficit minus Interest Pay...

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