Data presented in Interim Budget for 2014 – 2015 reveal that for the f

Data presented in Interim Budget for 2014 – 2015 reveal that for the financial year 2013 – 2014, the revised estimates do not show a decline in :

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Revenue deficit

Effective revenue deficit

Fiscal deficit

Primary deficit

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Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2014

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According to the Interim Budget presented in February 2014, the revised estimates for the financial year 2013-14 showed a decline in Revenue Deficit (from 3.3% to 3.2% of GDP), Effective Revenue Deficit (from 2.2% to 2.1% of GDP), and Fiscal Deficit (from 4.8% to 4.6% of GDP) compared to the Budget Estimates. However, the Primary Deficit showed an increase, from 1.3% of GDP (Budget Estimate) to 1.4% of GDP (Revised Estimate). Therefore, the Revised Estimates for 2013-14 did not show a decline in Primary Deficit.

In the Interim Budget 2014-15, the Revised Estimates for FY 2013-14 indicated an increase in the Primary Deficit compared to the Budget Estimates, while other deficit measures showed a slight decline.

Primary Deficit is the fiscal deficit minus interest payments. It indicates the government’s borrowing requirement excluding the interest burden from past debts. The increase in the primary deficit suggested that even excluding interest payments, the government’s non-interest expenditure exceeded its non-debt receipts to a greater extent than initially estimated.

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