- Fiscal Deficit measures the government's total borrowing requirement. - Primary Deficit indicates the government's borrowing requirement excluding the burden of past debt (interest payments). - The relationship between Fiscal Deficit, Primary Deficit, and Interest Payments is a fundamental concept in government budgeting and public finance.
If interest payment is added to primary deficit, it is equivalent to
Asked in UPPCS Prelims 2010 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
More Economic Development questions
- What is the effect of deficit financing on economy?
- If interest payments arc subtracted from gross fiscal deficit, the remainder will be
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- Primary deficit in the Union Budget for 2010-11 is estimated at
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- Fiscal deficit/GDP ratio has been maximum in the financial year
- Statement-I: Fiscal deficit is greater than budgetary deficit. Statement-II: Fiscal deficit is the borrowings from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.
- Match List I with List II and select the correct answer using the codes given below the Lists: List I List II (Term) (Explanation) I. Fiscal de‐ A) Excess of Total Expenditure ficit over Total Receipts II. Budget B) Excess of Revenue Expenditure deficit over Revenue Receipts C) Excess of Total Expenditure III. Revenover Total Receipts less borrowue deficit ings D) Excess of Total Expenditure IV. Primary over Total Receipts less borrowdeficit ings and Interest Payments