Saved Bookmarks
| 1. |
Write short notes on : (i) Budgetary deficit (ii) Revenue deficit (iii) Fiscal deficit (iv) Primary deficit . |
|
Answer» (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 and interest payments . Primary deficit = Fiscal deficit = Interest payments . |
|