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Economics (CUET) Government Budget and Economy

. …………… deficit includes interest payment by the government on the past year loans

revenue

capital

both a&b

neither a nor b

- Definition: The deficit that includes interest payment on past loans is called the "revenue deficit."

- Option 1: Revenue Deficit

- Includes day-to-day expenses of the government.

- Also includes interest payments on past loans.

- Correct Answer

- Option 2: Capital Deficit

- Relates to the government's investment in assets and infrastructure.

- Does not include interest payments.

- Option 3: Both A & B

- Implies both revenue and capital include interest payments.

- This is incorrect as only revenue deficit includes interest payments.

- Option 4: Neither A nor B

- This would indicate another type of deficit, but it's incorrect here.

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