BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue deficit
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Twin deficit
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Primary deficit
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Budgetary deficit
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Detailed explanation-1: -Primary Deficit: Primary deficit equals fiscal deficit minus interest payments.
Detailed explanation-2: -The primary deficit is calculated by subtracting interest payments for the borrowings from the current year’s fiscal deficit. The fiscal deficit is calculated by determining the difference between the total income and total expenditure of the government.
Detailed explanation-3: -The correct option is D Primary Deficit. Explanation: Primary deficit is referred to as the difference that exists between the fiscal deficit of the current year and the interest payment that was needed to be paid in the previous fiscal year.
Detailed explanation-4: -Types of Deficits in India Revenue deficit: Revenue expenditure as reduced by revenue receipts. Fiscal Deficit: Total expenditure as reduced by total receipts except borrowings. Primary Deficit: Fiscal deficit as reduced by interest payments.
Detailed explanation-5: -Primary deficit refers to the difference between the current year’s fiscal deficit and interest payment on previous borrowings. It indicates the borrowing requirements of the government, excluding interest. It also shows how much of the government’s expenses, other than interest payment, can be met through borrowings.