Match List-I with List-II and select the correct answer using the code given below the Lists :
| List-I (Type of Deficit) | List-II (Explanation) |
| A. Fiscal Deficit | 1. Total Expenditure – Revenue Receipts & Non-debt Capital Receipts |
| B. Revenue Deficit | 2. Revenue Expenditure – Revenue Receipts |
| C. Effective Revenue Deficit | 3. Revenue Deficit – Grants for Creation of Capital Assets |
| D. Primary Deficit | 4. Fiscal Deficit – Interest Payments |
A-1, B-2, C-3, D-4
A-1, B-3, C-2, D-4
A-4, B-2, C-3, D-1
A-4, B-3, C-2, D-1
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-2 – 2017
– **Revenue Deficit:** Occurs when the government’s revenue expenditure exceeds its revenue receipts. The formula B-2 is correct.
– **Effective Revenue Deficit:** Introduced to account for grants given by the Union Government to State Governments for the creation of capital assets. It is calculated as Revenue Deficit minus Grants for Creation of Capital Assets. The formula C-3 is correct.
– **Primary Deficit:** Represents the fiscal deficit excluding interest payments on previous borrowings. It indicates the government’s current year’s borrowing requirement to meet expenditure other than interest payments. The formula D-4 is correct.