Question : _________________ indicates that interest commitments have forced the government to borrow.
Option 1: Low/zero primary deficit
Option 2: Low/zero fiscal deficit
Option 3: Low/zero revenue deficit
Option 4: None of the above.
Correct Answer: Low/zero primary deficit
Solution : A low/zero primary deficit indicates that interest commitments have forced the government to borrow. The difference between fiscal deficit and primary deficit shows the amount of interest payments on the borrowings made in past. Hence, Option A is correct.
Question : Which of the following is correct.
Option 1: Primary deficit= fiscal deficit + interest payments
Option 2: Revenue deficit= total expenditure - total receipts
Option 3: Fiscal deficit= revenue expenditure - revenue receipts
Option 4: Primary deficit= fiscal deficit - interest payments. Hence, Option D is correct.
Question : It indicates the total borrowings requirement of the government including interest.
Option 1: Revenue deficit
Option 2: Fiscal deficit
Option 3: Primary deficit
Option 4: Budgetary deficit.
Question : It indicates the total borrowings requirement of the government excluding interest.
Question : It indicates inability of the government to meet its regular and recurring expenditure.
Question : It refers to excess of revenue expenditure over revenue receipt during the given fiscal year.
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