Match List-I with List-II:List IList II (a) Fiscal deficit (i) Excess of total expenditure over total…
Fiscal deficit=expenditure−nonborrowed receipts; conventional budget deficit=total expenditure−total receipts; revenue deficit=revenue expenditure−revenue receipts; primary…
Choose your answer
| List I | List II |
|---|---|
| (a) Fiscal deficit | (i) Excess of total expenditure over total receipts |
| (b) Budget deficit | (ii) Excess of revenue expenditure over revenue receipts |
| (c) Revenue deficit | (iii) Excess of total expenditure over total receipts less borrowings |
| (d) Primary deficit | (iv) Excess of total expenditure over total receipts less borrowings and interest payments |
Answer and explanation
Correct answer A
Fiscal deficit=expenditure−nonborrowed receipts; conventional budget deficit=total expenditure−total receipts; revenue deficit=revenue expenditure−revenue receipts; primary deficit=fiscal deficit−interest payments. This gives(iii),(i),(ii),(iv). The source phrases 'less borrowings and interest payments' without parentheses: it must mean removing borrowings from receipts and removing interest from expenditure, not subtracting interest from receipts. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv) (a)-(i), (b)-(iii), (c)-(ii), (d)-(iv) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii) (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
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UGC NET Economics