CUET Preparation Today
Which of the following statement is true? |
Fiscal deficit is the difference between the primary deficit and interest payments Primary deficit is the sum of primary deficit and interest payments Fiscal deficit is the difference between the total expenditure and total receipts (excluding borrowings) Both 2 and 3 |
Fiscal deficit is the difference between the total expenditure and total receipts (excluding borrowings) |
Fiscal deficit is a shortfall in a government's income compared with its spending. It arises when the spending of the government goes beyond its income. It indicates the total borrowing requirement of the government. Fiscal deficit = Total expenditure - Total receipts (excluding borrowing) Primary deficit = Fiscal deficit - Interest payments Therefore, Fiscal deficit = Primary deficit + interest payments |
