Question : Borrowings are equivalent to:
Option 1: Revenue receipts
Option 2: Revenue expenditure
Option 3: Primary deficit
Option 4: Fiscal deficit
Correct Answer: Fiscal deficit
Solution : The correct answer is (d) Fiscal deficit.
Fiscal deficit refers to the difference between the government's total expenditure and its total revenue (both tax and non-tax). When the government's total expenditure exceeds its total revenue, it needs to finance the deficit by borrowing money. Therefore, borrowings are a component of the fiscal deficit.
Question : Which of the following is correct.
Question : It refers to excess of revenue expenditure over revenue receipt during the given fiscal year.
Question : The term ____________ refers to the excess of total expenditure over total receipts, including borrowings.
Question : Identify the incorrect equation.
Question : From the following data calculate Interest payments- Fiscal deficit- 1250 Revenue deficit- 200 Primary deficit- 1255 Revenue receipts- 300 Non-debt creating capital receipts- 2000 Capital expenditure- 3050
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