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Economics › Budget, Fiscal Policy

Economics › Budget, Fiscal Policy

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.

Options

(a)

I and II only

(b)

II and III only

(c)

I and III only

(d)

I, II and III

Answer

(D)