- Fiscal Deficit Represents the total borrowing requirement of the government. It is calculated as Total Expenditure minus the sum of Revenue Receipts and Non-debt Capital Receipts. The formula A-1 is correct. - Revenue Deficit Occurs when the government's revenue expenditure exceeds its revenue receipts. The formula B-2 is correct. - Effective Revenue Deficit Introduced to account for grants given by the Union Government to State Governments for the creation of capital assets. It is calculated as Revenue Deficit minus Grants for Creation of Capital Assets. The formula C-3 is correct. - Primary Deficit Represents the fiscal deficit excluding interest payments on previous borrowings. It indicates the government's current year's borrowing requirement to meet expenditure other than interest payments. The formula D-4 is correct.
Match List-I with List-II and select the correct answer using the code given below the Lists : List-I (Type of List-II (Explanation) Deficit) 1. Total Expenditure – Reven‐
Asked in UPSC CDS 2 2017 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
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Answer: A. Fiscal Defi‐ ue Receipts & Non-debt cit Capital Receipts
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