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Standard XII

Economics

Primary Deficit & Revenue Deficit

The differenc...

Question

The difference between revenue expenditure and revenue receipts is:

Revenue deficit

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Fiscal deficit

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Budget deficit

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Primary deficit

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Solution

The correct option is A
Revenue deficit

The excess of revenue expenditures over revenue receipts is called revenue deficit.

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Similar questions

Q. Match List-I with List-II and select the correct answer using the code given the lists.

List-I (Type of budget deficit)	List-II (Measurement of deficit)
A. Revenue Deficit	$1$ . Gap between total expenditure and total receipts
B. Fiscal Deficit	$2$ . Excess of revenue expenditure over revenue receipts
C. Primary Deficit	$3$ . Fiscal deficit less interest payments
D. Budgetary Deficit	$4$ . Difference between revenue receipts plus certain non-debt capital receipts and the total expenditure including loans, net of repayments

Calculate Revenue Deficit, Fiscal Deficit and Primary Deficit from the following data:

Items (Rs in crore)

(i) Revenue expenditure 22,250

(ii) Capital expenditure 28,000

(iii) Revenue receipts 17,750

(iv) Capital receipts (net of borrowing) 20,000

(v) Interest payments 5,000

(vi) Borrowings 12,500

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 (a) fiscal deficit, and (b) primary deficit from the following:

Items (Rs in crore)

Revenue expenditure = 70,000

Borrowings = 15,000

Revenue receipts = 50,000

Interest payments = 25% of revenue deficit.

Q. Consider the following statements about 'Effective Revenue Deficit':
1. Effective revenue deficit refers to the difference between fiscal deficit and grants for creation of capital assets.
2. Effective revenue deficit signifies that amount of capital receipts that are being used for actual consumption expenditure of the government.
3. This concept was introduced in the Union Budget 2011-12.
Select the correct statements using the codes given below:

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The difference between revenue expenditure and revenue receipts is:

The correct option is A Revenue deficit The excess of revenue expenditures over revenue receipts is called revenue deficit.

The correct option is A
Revenue deficit

The excess of revenue expenditures over revenue receipts is called revenue deficit.