Q139
Indian EconomyPublic Finance, Budget & Taxation
Fiscal deficit is
- a.Revenue Receipts + Capital Receipts (only recoveries of loans and other receipts) - Total expenditure
- b.Budget Deficit + Government's market borrowings and liabilities
- c.Primary Deficit + Interest Payment
- d.All of the above
Answer: (D) All of the above
Fiscal deficit = total expenditure - (revenue receipts + non-debt capital receipts such as recoveries of loans and disinvestment); it equals the government's total borrowing requirement for the year. The other two statements say the same thing: budget deficit plus market borrowings and other liabilities, and primary deficit plus interest payments (since primary deficit = fiscal deficit - interest payments). Revenue deficit = revenue expenditure - revenue receipts.