Question:
Which among the following indicates the total borrowing requirements of Government from all sources?
ARevenue deficit
BFiscal Deficit
CPrimary Deficit
DEffective Revenue Deficit
Answer:
B. Fiscal Deficit
Explanation:
Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Effective revenue deficit is the difference between revenue deficit and grants for creation of capital assets. Fiscal deficit is the difference between the revenue receipts plus non-debt capital receipts and the total expenditure including loans, net of repayments. This indicates the total borrowing requirements of Government from all sources. Primary deficit is measured by fiscal deficit less interest payments.