Q71. Suppose the revenue expenditure is Rs.80,000 crores and the revenue receipts of the Government are Rs.60,000 crores. The Government budget also shows borrowings of Rs.10,000 crores and interest payments of Rs.6,000 crores.
Which of the following statements are correct?
I. Revenue deficit is Rs.20,000 crores.
II. Fiscal deficit is Rs.10,000 crores.
III. Primary deficit is Rs.4,000 crores.
Select the correct answer using the code given below.
Detailed Solution
Let's calculate each deficit based on the given figures: I. Revenue Deficit = Revenue Expenditure - Revenue Receipts = Rs. 80,000 crores - Rs. 60,000 crores = Rs. 20,000 crores. So, statement I is correct.
II. Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-debt Capital Receipts) Alternatively, Fiscal Deficit is equal to the total borrowings and other liabilities of the government.
Given that borrowings are Rs. 10,000 crores, the fiscal deficit is Rs. 10,000 crores. So, statement II is correct. III. Primary Deficit = Fiscal Deficit - Interest Payments = Rs. 10,000 crores - Rs.
6,000 crores = Rs. 4,000 crores. So, statement III is correct. Since all three statements are correct, the correct option is D. Understanding government budget concepts and deficit calculations is fundamental for UPSC Economy.
Current Affairs Link
Union Budget is a basic yet important topic.
More Government Budget Deficits Questions
More Economy Questions
Q31. With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Vent...
BQ32. Which of the following are the sources of income for the Reserve Bank of India? I. Buying and sellin...
DQ34. Consider the following statements: I. The Reserve Bank of India mandates all the listed companies in...
BQ35. Consider the following statements: Statement I: In India, income from allied agricultural activities...
DQ36. Consider the following statements: I. India has joined the Minerals Security Partnership as a member...
CMore from UPSC 2025 GS1
Q1. Consider the following types of vehicles: I. Full battery electric vehicles II. Hydrogen fuel cell v...
CQ2. With reference to Unmanned Aerial Vehicles (UAVs), consider the following statements: I. All types o...
DQ3. In the context of electric vehicle batteries, consider the following elements: I. Cobalt II. Graphit...
CQ4. Consider the following: I. Cigarette butts II. Eyeglass lenses III. Car tyres How many of them conta...
CQ5. Consider the following substances: I. Ethanol II. Nitroglycerine III. Urea Coal gasification technol...
BAce UPSC with AI-powered Practice
LearnPro's test series adapts to your weak topics and shows real analytics.
Explore Courses →