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 : 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 : 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 true?

A) Fiscal deficit is financed from borrowings.

B) Recovery of loans is a revenue receipt.

Option 1: Only B

Option 2: Neither A nor B

Option 3: Both A and B

Option 4: Only A

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