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 : 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 : Revenue expenditure minus revenue receipts is____________.
Option 1: revenue deficit
Option 2: budget deficit
Option 3: always negative
Option 4: always positive
Question : Which one of the following is not included in current revenue of the union government ?
Option 1: Tax revenue
Option 2: non tax revenue
Option 3: Loans
Option 4: Interest payments
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