Question

Which among the following indicates the total borrowing requirements of Government from all sources?

• A. Revenue deficit
• B. Fiscal Deficit
• C. Primary Deficit
• D. Effective Revenue Deficit

Answer 1

Answer:

B. Fiscal Deficit

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.