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Home Questions FEH8RHGFMP
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following statement/statements are true?
Statement 1: Fiscal deficit is the difference between total expenditure and total receipts.
Statement 2: Primary deficit is the difference between total receipt and interest payments.

Options:

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Correct Answer:

Both the statements are false.

Explanation:

Fiscal deficit is the difference between total expenditure and total receipts excluding borrowing. Primary deficit is the difference between fiscal deficit and interest payments.

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