Q. Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores. Which of the following statements are correct?

I. Revenue deficit is ₹ 20,000 crores.
II. Fiscal deficit is ₹ 10,000 crores.
III. Primary deficit is ₹ 4,000 crores.

Select the correct answer using the code given below.

(a) I and II only      (b) II and III only
(c) I and III only      (d) I, II and III

71. मान लीजिए सरकार का राजस्व व्यय ₹ 80,000 करोड़ है और राजस्व प्राप्ति ₹ 60,000 करोड़ है। सरकारी बजट ₹ 10,000 करोड़ के उधार-ग्रहण और ₹ 6,000 करोड़ के ब्याज भुगतान को भी प्रदर्शित करता है। निम्नलिखित कथनों में कौन-कौन से सही हैं?

I. राजस्व घाटा ₹ 20,000 करोड़ है।
II. राजकोषीय घाटा ₹ 10,000 करोड़ है।
III. प्राथमिक घाटा ₹ 4,000 करोड़ है।

नीचे दिए गए कूट का प्रयोग कर सही उत्तर चुनिए।

(a) केवल I और II
(b) केवल II और III
(c) केवल I और III
(d) I, II और III

Answer: (d) I, II and III

Explanation:

• Statement I is correct: Revenue Deficit = Revenue Expenditure – Revenue Receipts
• Revenue Deficit = ₹80,000 crores – ₹60,000 crores = ₹20,000 crores.
• Statement II is correct: Fiscal Deficit represents the total borrowing requirement of the Government.
• Since borrowings are given as ₹10,000 crores, the Fiscal Deficit = ₹10,000 crores.
• Statement III is correct: Primary Deficit = Fiscal Deficit – Interest Payments
• Primary Deficit = ₹10,000 crores – ₹6,000 crores = ₹4,000 crores.

Key Formulae:

• Revenue Deficit = Revenue Expenditure – Revenue Receipts
• Fiscal Deficit = Total Expenditure – Total Receipts (excluding borrowings)
• Primary Deficit = Fiscal Deficit – Interest Payments

Source:
Economic Times – Understanding Different Types of Deficits