Tag: public finance, budget and fiscal policy

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Questions Related to public finance, budget and fiscal policy

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Match List-I with List-II and select the correct answer using the code given the lists.

List-I (Type of budget deficit) List-II (Measurement of deficit)
A. Revenue Deficit $1$. Gap between total expenditure and total receipts
B. Fiscal Deficit $2$. Excess of revenue expenditure over revenue receipts
C. Primary Deficit $3$. Fiscal deficit less interest payments
D. Budgetary Deficit $4$. Difference between revenue receipts plus certain non-debt capital receipts and the total expenditure including loans, net of repayments

  1. A-$1$, B-$2$, C-$3$, D-$4$

  2. A-$2$, B-$4$, C-$3$, D-$1$

  3. A-$2$, B-$3$, C-$4$, D-$1$

  4. A-$1$, B-$4$, C-$3$, D-$2$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Revenue Deficit: It occurs when the actual amount of revenue expenditure and actual amount of received revenue do not match.
Fiscal Deficit: Fiscal deficit is an economic phenomenon, calculated as the budget deficit, plus the borrowings of the government.
Primary Deficit: Primary deficit is obtained by subtracting interest payments from fiscal deficit of any country of a particular year. It is the deficit in the fiscal budget, unaccounted for any borrowing related interest payments.
Budgetary Deficit: A budgetary deficit is a common economic phenomenon, which occurs when the spending of a government exceeds the government revenue. 

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

If borrowings and other liabilities are added to the budget deficit it is termed as __________.

  1. fiscal deficit

  2. primary deficit

  3. capital deficit

  4. revenue deficit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The fiscal deficit is calculated as the total budget deficit plus the government's borrowings and other liabilities.