Match the following: Description of the deficit Type of Deficit 1. Total estimated expenditure as…
The matching is 1-ii, 2-i, 3-iv, 4-iii. Budget deficit compares total expenditure with total receipts, revenue deficit compares revenue expenditure with revenue receipts,…
Choose your answer
Match the following:
| Description of the deficit | Type of Deficit |
| 1. Total estimated expenditure as reduced by total estimated receipts | i) Revenue deficit |
| 2. Total expenditure as reduced by total receipts on revenue account | ii) Budget deficit |
| 3. Total expenditure as reduced by total receipts except borrowings | iii) Primary deficit |
| 4. Fiscal deficit as reduced by interest payments | iv) Fiscal deficit |
Answer and explanation
Correct answer D
The matching is 1-ii, 2-i, 3-iv, 4-iii. Budget deficit compares total expenditure with total receipts, revenue deficit compares revenue expenditure with revenue receipts, and fiscal deficit excludes borrowings from receipts. Primary deficit is fiscal deficit less interest payments.
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Telangana SET (TG SET)