Question : A government budget shows a primary deficit of INR 6,900 crore. The revenue expenditure on interest payments is INR 400 crore. Fiscal deficit is equal to:
Option 1: INR 6,500 crore
Option 2: INR 7,300 crore
Option 3: INR 7,100 crore
Option 4: INR 6,900 crore
Correct Answer: INR 7,300 crore
Solution : The correct answer is INR 7,300 crore.
A fiscal deficit is the difference between the government's total expenditure and its total revenue, excluding borrowing. It reflects the government's borrowing to meet its expenses, leading to increased debt.
Fiscal Deficit = Primary Deficit + Interest Payment
Fiscal Deficit = INR 6,900 crore + INR 400 crore
Fiscal Deficit = INR 7,300 crore.
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Question : Which of the following expressions is correct?
Option 1: Gross Primary Deficit = Gross Fiscal Deficit + Net Interest Liabilities
Option 2: Gross Primary Deficit = Gross Fiscal Deficit – Net Interest Liabilities
Option 3: Gross Primary Deficit = Gross Fiscal Deficit ÷ Net Interest Liabilities
Option 4: Gross Primary Deficit = Gross Fiscal Deficit × Net Interest Liabilities
Question : Directions: The bar graph shows the percentage distribution of the total expenditures of a company under various expenses heads during 2005. Study the bar graph and answer the following four question
If the interest on the loan amounted to INR 2.45 crore, then the total amount of expenditure on an advertisement, taxes and research and development is equal to:
Option 1: INR 3 crore
Option 2: INR 5.4 crore
Option 3: INR 4.2 crore
Option 4: INR 7 crore
Question : What are the differences between revenue expenditures and revenue receipts?
Option 1: Revenue
Option 2: Total expenditure
Option 3: Revenue deficit
Option 4: Total revenue
Question : Expenditure of the government on health facilities, education and fixed-asset acquisition is termed as _________.
Option 1: revenue expenditure
Option 2: plan expenditure
Option 3: non-plan revenue expenditure
Option 4: capital expenditure
Question : As per the estimates of the Union Budget 2019-20, how much investment is needed in Railway Infrastructure during 2018-2030?
Option 1: INR 40 lakh crore
Option 2: INR 50 lakh crore
Option 3: INR 60 lakh crore
Option 4: INR 30 lakh crore
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