Identify which of the following statements are correct?

(A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government.
(B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government.
(C) Primary deficit is the difference between total planned receipt and interest payments.
(D) Fiscal deficit is the sum of primary deficit and interest payment.

Choose the correct answer from the options given below:

(A) and (D) only

The correct answer is Option (2) → (A) and (D) only

(A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government. Correct. It reflects how much the government needs to borrow to meet its expenses.
(B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government. Incorrect. Fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing.
(C) Primary deficit is the difference between total planned receipt and interest payments. Incorrect. Primary deficit is defined as Fiscal Deficit minus Interest Payments.
(D) Fiscal deficit is the sum of primary deficit and interest payment. Correct.  

Primary deficit = Fiscal deficit – Net interest liabilities

Thus, Fiscal deficit = Primary deficit + Net interest liabilities