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
Correct Answer: Total expenditure
Solution : The correct answer is (A) Total expenditure minus revenue receipts.
The revenue deficit represents the difference between the government's total expenditure and its revenue receipts specifically. It is a measure of the extent to which the government's revenue falls short of covering its current expenses, excluding capital expenditures.
Total expenditure includes both revenue expenditure and capital expenditure. Revenue expenditure refers to the government's day-to-day expenses, such as salaries, subsidies, interest payments, and maintenance costs, while capital expenditure refers to investments in long-term assets and infrastructure.
Revenue receipts, on the other hand, represent the government's income from various sources such as taxes, grants, dividends, and fees.
By subtracting revenue receipts from total expenditure, the revenue deficit provides an indication of the extent to which the government is relying on borrowings or capital receipts to finance its current expenses.
Question : The primary deficit is calculated as ____________ minus interest payments.
Option 1: Revenue deficit
Option 2: Fiscal deficit
Option 3: Capital receipts
Option 4: Revenue receipts
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 : Fill in the blanks- ____________________= Total expenditure + Total receipts.
Option 1: Capital deficit
Option 2: Budgetary deficit
Option 3: Revenue deficit
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
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