VVhich of the following statements is true A Fiscal deficit is the difference between the government...........

Economics (CUET) Government Budget and Economy

VVhich of the following statements is true ?

(A) Fiscal deficit is the difference between the government's budgetary expenditure and budgetary receipts excluding borrowings..

(B) Primary deficit is the dnference between total receipts and interest payments.

(D) Primary deficit equals revenue deficit less in terest payments.

(E) Revenue deficit refers to excess of governmenfs revenue expenditure over its revenue receip ts .

Choose the correct answer from the options given below :

(1) (C) and (E) only

(2) (B) and (D) only

(3) (A) and (E) only

(4) (A) and (C) only

This questions was previously asked in

CUET ECONOMIC Previous Year Paper 2022

- Statement (A): True. Fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowings).

- Statement (B): False. Primary deficit is the fiscal deficit minus interest payments.

- Statement (C): False. An increase in the revenue deficit doesn't always lead to a higher fiscal deficit; it depends on other factors too.

- Statement (D): False. Primary deficit doesn't equate to revenue deficit minus interest payments.

- Statement (E): True. Revenue deficit is the excess of government’s revenue expenditure over its revenue receipts.

- Correct Answer: (3) (A) and (E) only.

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