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Home Questions M2889FDW34
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Receipts and Expenditure of the Central Government, 2020-21

 

(As per cent of GDP)

1. Revenue Receipts (a+b)

(a) Tax revenue (net of states share)

(b) Non-tax revenue

9.0

7.3

1.7

2. Revenue Expenditure of which

(a) Interest payments

(b) Major Subsidies

(c) Defence expenditure

11.7

3.1

1.0

0.9

3. Revenue Deficit (2-1)

2.7

4. Capital Receipts (a+b+c)

(a) Recovery of loans

(b) Other receipts (mainly PSU disinvestment)

(c) Borrowings and other liabilities

4.5

0.1

0.9

3.5

5. Capital Expenditure

1.8

6. Non-debt Receipts [2+5=7(a)+7(b)]

10.0

7. Total Expenditure [2+5=7(a)+7(b)]

(a) Plan expenditure

(b) Non-plan expenditure

13.5

-

-

8. Fiscal deficit [7-1-4(a)-4(b)]

3.5

Primary Deficit [8-2(a)]

0.4

Which deficit indicates the total borrowing requirements of the government from all sources?

Options:

Budgetary deficit

Fiscal deficit

Primary deficit

Revenue deficit

Correct Answer:

Fiscal deficit

Explanation:

The correct answer is Option (2) → Fiscal deficit

The fiscal deficit represents the difference between the government's total expenditure and its total revenue (excluding borrowings). It indicates the total borrowing requirements of the government to meet its expenditures.

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