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Write short notes on : (i) Budgetary deficit (ii) Revenue deficit (iii) Fiscal deficit(iv) Primary deficit . |
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Answer» Solution :(i) Budgetary deficit is the excess of all EXPENDITURE on both revenue and capital accounts , over all RECEIPTS on revenue and capital accounts INCLUDING borrowings by the central government . Budgetary deficit = TE - TR where TE `gt` TR , TR = Total receipts , TE = Total expenditure . (ii) Revenue deficit is the excess of revenue expenditure over revenue receipts Revenue deficit = RE - RR where `RE gt R R` , where RE = Revenue expenditure and RR = Revenue receipts . (iii) Fiscal deficit is the excess of total expenditure (both on revenue and capital accounts ) over revenue receipts and capital receipts excluding borrowings. Fiscal deficit = Total Expenditure- Total Receipts excluding borrowings (iv) Primary deficit is the DIFFERENCE between fiscal deficit andinterest payments . Primary deficit = Fiscal deficit = INTEREST payments . |
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