{"id":1475,"date":"2024-03-05T15:18:00","date_gmt":"2024-03-05T15:18:00","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=1475"},"modified":"2024-03-05T15:18:00","modified_gmt":"2024-03-05T15:18:00","slug":"if-interest-payment-is-added-to-primary-deficit-it-is-equivalent-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-interest-payment-is-added-to-primary-deficit-it-is-equivalent-to\/","title":{"rendered":"If interest payment is added to primary deficit, it is equivalent to"},"content":{"rendered":"

[amp_mcq option1=”Budget deficit” option2=”Fiscal deficit” option3=”Deficit financing” option4=”Revenue deficit Ans. b” correct=”option2″]<\/p>\n

The correct answer is (b).<\/p>\n

The primary deficit is the difference between the government’s total revenue and its total expenditure, excluding interest payments. The fiscal deficit is the difference between the government’s total revenue and its total expenditure, including interest payments.<\/p>\n

Therefore, if interest payment is added to primary deficit, it is equivalent to fiscal deficit.<\/p>\n

Budget deficit is the difference between the government’s total revenue and its total expenditure for a given fiscal year. Deficit financing is the practice of borrowing money to finance government spending. Revenue deficit is the difference between the government’s total revenue from taxes and other sources and its total expenditure on goods and services, excluding interest payments.<\/p>\n","protected":false},"excerpt":{"rendered":"

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