Which of the following statements about revenue and primary deficit is/are correct?
- 1. Revenue deficit refers to the excess of revenue expenditure over revenue receipts.
- 2. Primary deficit is measured as fiscal deficit less interest payments.
Select the correct answer using the code given below.
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CBI DSP LDCE – 2023
– Statement 2 is correct. Primary deficit is defined as the fiscal deficit minus interest payments on past borrowings. It indicates the government’s borrowing requirement excluding the interest burden from previous debts, showing the deficit for current year’s expenditure (excluding interest).