UPSC CSE Prelims
Question 17
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?
- Revenue deficit is ₹20,000 crores.
- Fiscal deficit is ₹10,000 crores.
- Primary deficit is ₹4,000 crores.
Select the correct answer using the code given below.
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Correct answer: D
Correct Option: D (I, II and III)
Explanation: Revenue deficit = ₹80,000 − ₹60,000 = ₹20,000 crore. Fiscal deficit corresponds to borrowing of ₹10,000 crore in the given budget; primary deficit is fiscal deficit less interest, ₹10,000 − ₹6,000 = ₹4,000 crore.
Statement / Pair / Item-wise Analysis:
I: True-revenue deficit is ₹20,000 crore.
II: True-stated borrowings indicate a ₹10,000-crore fiscal deficit in the question.
III: True-primary deficit is ₹4,000 crore.
Option-wise Analysis:
A. Incorrect-omits III which the answer requires.
B. Incorrect-omits I which the answer requires.
C. Incorrect-omits II which the answer requires.
D. Correct-this matches the facts and the item-wise assessment above.