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Standard XII

Economics

Primary Deficit & Revenue Deficit

If in a budge...

Question

If in a budget the government's revenue receipts and non-debt capital revenue are less than the government's total expenditure, it is called _____.

budget deficit

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revenue deficit

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fiscal deficit

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primary deficit

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Solution

The correct option is B fiscal deficit

A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.

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Similar questions

Q. In a government budget, revenue deficit is

R s . 40 c r o r e s

. If revenue receipts are

R s . 90 c r o r e s

and capital receipts

R s . 60 c r o r e s

, then how much is the revenue expenditure.

In a government budget, if revenue receipts = Rs. 100 lakh, capital receipts = Rs. 50 lakh and revenue deficit = Rs. 25 lakh, how much is the revenue expenditure?

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

Find fiscal deficit, given the following information:

Items (Rs)

(i) Estimated total expenditure of the government 1,50,000

(ii) Revenue receipts 1,20,000

(iii) Non-debt capital receipts 10,000

Q. State with reasons whether you agree or disagree with the following statements.

1. Capital budget consists of revenue receipts and revenue expenditure.
2. When government expenditure is greater than government revenue, it is called Surplus Budget.
3. During the period of inflation, Surplus Budget is advisable.

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If in a budget the government's revenue receipts and non-debt capital revenue are less than the government's total expenditure, it is called _____.

The correct option is B fiscal deficit A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.

The correct option is B fiscal deficit

A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.