📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Consider the following statements regarding the Union Budget and Fiscal Indicators: 1. The fiscal deficit represents the excess of total revenue receipts over total expenditure. 2. The primary deficit is the fiscal deficit minus interest payments. 3. The effective revenue deficit excludes grants for the creation of capital assets. Which of the above statements is/are correct?

      A 1 and 2 only Correct Answer Incorrect Answer
      B 2 and 3 only Correct Answer Incorrect Answer
      C 1 and 3 only Correct Answer Incorrect Answer
      D 2 only Correct Answer Incorrect Answer
      E 1, 2 and 3 Correct Answer Incorrect Answer

      Solution

      Detailed Explanation: • Statement 1: Incorrect — Fiscal deficit = Total expenditure – (Revenue + Non-debt capital receipts), not the other way around. • Statement 2: Correct — Primary deficit = Fiscal deficit – Interest payments. • Statement 3: Correct — Effective revenue deficit = Revenue deficit – Grants for capital creation, introduced to improve transparency.

      Practice Next
      More Economic and Social Issues ESI Questions
      ask-question