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Standard XII

Economics

Capital Budget

Which of the ...

Question

Which of the following statement is true?

Loans from IMF is a revenue receipt

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A higher revenue deficit necessarily leads to a higher fiscal deficit

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Borrowing by a government represents a situation of fiscal deficit

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Revenue deficit is the excess of capital receipt over the revenue receipts

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Solution

The correct option is C
Borrowing by a government represents a situation of fiscal deficit

When there is a fiscal deficit, the government gets to borrow.

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Similar questions

Q. Long answer type questions:
Distinguish between the following:
(a) Revenue receipts and Capital receipts
(b) Revenue deficit and Fiscal deficit.

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 from the information given below:

Items (Rs in lakh)

(i) Borrowing by the government 600

(ii) Revenue receipts 100

(iii) Capital receipts 750

(iv) Interest payment 150

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

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

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Which of the following statement is true?

The correct option is C Borrowing by a government represents a situation of fiscal deficit When there is a fiscal deficit, the government gets to borrow.

The correct option is C
Borrowing by a government represents a situation of fiscal deficit

When there is a fiscal deficit, the government gets to borrow.