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Home Questions GJJUEPPA9B
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following is a correctly matched pair?

1. Primary deficit A. Fiscal deficit-interest payments
2. Revenue defecit B. Borrowings
3. Fiscal deficit C. Primary deficit + taxable items
4. Tax deficit D. Borrowings in the government budget
Options:

1-A

2-B

3-C

4-D

Correct Answer:

1-A

Explanation:

Primary deficit refers to the difference between the current year's fiscal deficit and interest payment on previous borrowings. It indicates the borrowing requirements of the government, excluding interest.

Primary deficit = Fiscal deficit - interest payments

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