Read the following statements carefully and choose the correct alternatives given below Stateme...........

Economics (CUET) Government Budget and Economy

Download Solution PDF

Read the following statements carefully and choose the correct alternatives given below:

Statement 1: Fiscal Deficit =Total Budget

Expenditure - otal Budget Receipts (Net of borrowing)

Statement 2: Primary Deficit = Fiscal Deficit + Interest Payments

Alternatives:

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false.

Statement 2 is true and Statement 1 is false.

छोटे Courses बड़े Results

Master Government Budget and Economy

Prepare through Micro-courses

Try Now

Explanation:

Option (3) is correct.
Explanation: Fiscal deficit is defined as over total receipts excess of total expenditure (revenue and capital receipts) excluding = Total Budget borrowing. Fiscal Deficit
Total Budget Receipts (Net Expenditure of borrowing). Primary deficit refers to the difference between fiscal deficit of the current year and interest payments on the previous
borrowings. Primary Deficit = Fiscal Deficit - Interest Payments.