Question : The concept of "fiscal deficit" in the government budget represents:
Option 1: The excess of total revenue over total expenditure
Option 2: The excess of total expenditure over total revenue
Option 3: The excess of revenue receipts over revenue expenditure
Option 4: The excess of capital receipts over capital expenditure
Correct Answer: The excess of total expenditure over total revenue
Solution : The correct answer is (b) The excess of total expenditure over total revenue.
The concept of "fiscal deficit" in the government budget represents the excess of total expenditure over total revenue. It indicates the shortfall or deficit in the government's finances, where the expenses incurred by the government exceed the revenue generated from various sources, such as taxes, fees, and other income.
Fiscal deficit occurs when the government needs to borrow or use other financing methods to cover the shortfall between its total expenditure and total revenue. It is an important measure of the government's fiscal health and is often used to assess the sustainability of its spending and borrowing practices.
Question : The term ____________ refers to the excess of total expenditure over total receipts, including borrowings.
Option 1: Budget deficit
Option 2: Fiscal deficit
Option 3: Revenue deficit
Option 4: Primary deficit
Question : The revenue deficit is calculated as ____________ minus revenue receipts.
Option 1: Total expenditure
Option 2: Capital receipts
Option 3: Capital expenditure
Option 4: Fiscal deficit
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 : 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
Question : It refers to excess of revenue expenditure over revenue receipt during the given fiscal year.
Option 1: Revenue deficit
Option 3: Primary deficit
Option 4: Budgetary deficit.
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