Primary Deficit & Revenue Deficit
Trending Questions
What are the limits of fiscal policy?
Fiscal policy can conflict with monetary policy in certain circumstances.
Government spending and taxation cuts have consequences for the government deficit; there are also limits to the utility of stimulus in a globalised economic system.
Governments spend a significant proportion of GDP anyway and so marginal increases in the rate of expenditure are unlikely to have an overall significant outcome.
Spending is often wasted and is inefficient, so it is not economically advisable to spend government money in this way.
Why were reforms introduced in India?
How do changes in bank rate affect the money supply in an economy? Explain.
Can there be a fiscal deficit without a revenue deficit?
Give the relationship between the revenue deficit and the fiscal deficit.
Explain the role of the government budget in fighting inflationary and deflationary tendencies.
What causes the fiscal deficit?
The difference between revenue expenditure and revenue receipts is:
Budget deficit
Primary deficit
Revenue deficit
Fiscal deficit
Explain the relation between government deficit and government debt.
What does fiscal deficit equal to?
What does zero primary deficit indicate?
What is the significance of primary deficit?
What is fiscal deficit? Can there be fiscal deficit without revenue deficit?
What is meant by revenue deficit?
Do you agree that revenue deficit increases when the government fails to recover its loans?
The government budget has a revenue deficit. How it can be financed?
Explain the relation between government deficit and government debt.
Find Primary Deficit from the following data:
Items (Rs in crore)
(i) Fiscal deficit 9, 000
(ii) Interest payment by the government 900
900
1000
8, 100
0
Fiscal Responsibility and Budget Management Act (FRBMA) ACT 2003 concerns:
neither fiscal nor revenue deficit
revenue deficit only
both fiscal and revenue deficit
fiscal deficit only
| Particulars | (Rs. in Crore) |
| (i) Revenue Expenditure | 45, 000 |
| (ii) Borrowings | 12, 000 |
| (iii) Revenue Receipts | 35, 000 |
| (iv) Interest Payments | 30% of Revenue Deficit |
From the following data about a government budget, find out (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:
Items (Rs in crore)
(i) Revenue receipts 55
(ii) Capital receipts 42
(iii) Non-tax revenue 18
(iv) Borrowings 40
(v) Revenue expenditure 88
(vi) Interest payments 28
A rise in fiscal deficit when the government revises the salary structure of its employees leads to a rise in primary deficit as well. Comment.
Primary Deficit Equals:
Payment of interest by the government during the year is estimated to be Rs. 75, 000 while the excess of budgetary expenditure over budgetary receipts (net of borrowing) is estimated to be Rs. 1, 15, 000. Find primary deficit.
(a) Revenue deficit
(b) Fiscal deficit
(c) Primary deficit.
(1) Promote economic growth
(2) Mobilise resources for economic growth
(3) Ensure economic growth and distribution
(4) Increase employment opportunities
- Only 1 and 2 are correct
- Only 2 and 3 are correct
- Only 2 and 4 are correct
- 1, 2, 3 and 4 are correct
If primary deficit is Rs 6, 900 and interest payment is Rs 600, then fiscal deficit is :
Rs 6, 300
Rs 7, 500
Rs 7, 400
Rs 7, 300
Primary deficit in a government budget equals:(choose the correct alternative)
Borrowings less interest payments
Interest payments less borrowings
None of the above
Interest payments
EXPLAIN IMPLICATIONS OF FISCAL DEFICIT . 6 MARKS
Discuss the meaning of following deficits: (i) Revenue Deficit; (ii) Fiscal Deficit; and (iii) Primary Deficit.
