Which of the following indicates balance of payment "Deficit"?

Autonomous payments > autonomous receipt

The correct answer is Option 4: Autonomous payments > autonomous receipt

Balance of payment account is in deficit when the overall debit side exceeds the credit side of the account i.e. when a country's payments for imports, transfers, and interest exceed its receipts from exports, transfers, and interest. So, in order to balance the account various accommodating transactions are made.

The transactions done to balance the deficit are accommodating whereas, the transactions done with profit motive and which cause this surplus or deficit are called as autonomous transactions. A deficit in the BoP occurs when a country's autonomous payments exceed its autonomous receipts.

Autonomous payments refer to transactions driven by economic motives, such as imports of goods and services, interest payments on foreign debt, etc. Autonomous receipts represent inflows of foreign currency through exports, foreign investments, etc.

Thus, when the autonomous payments > autonomous receipt, the BoP account is in deficit.

Let's analyze the options:

Option 1: "Capital account payments > capital account receipts".  This option refers to the capital account, not the current account. It does not directly indicate a balance of payments deficit.

Option 2: "Current account receipts > current account payments": This option suggests that a country is receiving more from its current account (exports, transfers, etc.) than it is paying out. This indicates a surplus, not a deficit.

Option 3: Accommodating transactions compensate the surplus or deficit brought about by autonomous transactions. It seeks to bring equality between the payments and receipts of foreign exchange. the deficit or to lower the deficit. Example: Drawings from SDR, borrowings from IMF or central banks of other countries etc. Thus, these transactions not the fundamental indicator of a deficit.