Deficits — Fiscal, Budget, Revenue, Primary (UPSC Prelims PYQ 2001)

Match List I with List II and select the correct answer using the codes given below the Lists:

List I (Term)

1. Fiscal deficit
2. Budget deficit
3. Revenue deficit
4. Primary deficit

List II (Explanation)

1. Excess of Total Expenditure over Total Receipts
2. Excess of Revenue Expenditure over Revenue Receipts
3. Excess of Total Expenditure over Total Receipts less borrowings
4. Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments

Codes:

1. I-C, II-A, III-B, IV-D
2. I-D, II-C, III-B, IV-A
3. I-A, II-C, III-B, IV-D
4. I-C, II-A, III-D, IV-B

Explanation

Option (a) is correct

• Fiscal deficit refers to the excess of total expenditure over total receipts excluding borrowings, hence I-C. Budget deficit means the excess of total expenditure over total receipts, so II-A. Revenue deficit occurs when revenue expenditure exceeds revenue receipts, making III-B correct. Primary deficit is fiscal deficit minus interest payments, that is, excess of total expenditure over total receipts excluding borrowings and interest payments, therefore IV-D.

Answer: (a) I-C, II-A, III-B, IV-D