Question : Identify the incorrect equation.
Option 1: Revenue receipts = Tax revenue (net of State's share) less non-tax revenue
Option 2: Gross fiscal deficit = Total expenditure - (Revenue receipts + Non-debt creating capital receipts)
Option 3: Gross primary deficit = Gross fiscal deficit - Net interest liabilities
Option 4: Revenue deficit = Revenue expenditure - revenue receipts
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Correct Answer: Revenue receipts = Tax revenue (net of State's share) less non-tax revenue
Solution : The correct answer is Revenue receipts = Tax revenue (net of State's share) less non-tax revenue.
The accurate equation is Revenue receipts = Tax revenue (net of State's share) + Non-tax revenue. Revenue receipts encompass all government income, including tax revenue and non-tax revenue. The phrase "net of State's share" indicates the central government's portion of tax revenue after sharing with state governments.
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Question : Gross primary deficit is equal to ____________.
Option 1: difference between gross fiscal deficit and interest payments
Option 2: difference between total expenditure and total receipts
Option 3: difference between net borrowings and net capital receipts
Option 4: difference between revenue deficit and capital expenditure
Question : The dividends received by the government from Public Sector Undertakings (PSUs) are ________.
Option 1: capital expenditure
Option 2: capital receipts
Option 3: non-tax revenue receipts
Option 4: tax revenue receipts
Question : Revenue expenditure minus revenue receipts is____________.
Option 1: revenue deficit
Option 2: budget deficit
Option 3: always negative
Option 4: always positive
Question : Which of the following is the best estimate of the total borrowings by the government?
Option 1: Primary Deficit
Option 2: Revenue Receipts
Option 3: Money Supply
Option 4: Fiscal Deficit
Question : Find the part of the given sentence that has an error in it. If there is no error, choose 'No error'. The fiscal deficit has to be held in check because it represent the government's claim on the non-government sector's savings.
Option 1: No error
Option 2: because it represent the government's claim
Option 3: on the non-government sector's savings.
Option 4: The fiscal deficit has to be held in check
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