Q. 165.0( 2 Votes )
Identify which of
a) The false, fiscal deficit is the government’s total expenditure and its total receipts excluding the borrowing. Therefore it is false because borrowing is not being excluded.
b) False, planned expenditure includes both revenue and capital expenditure and same in case of receipts. Further, the borrowing is not neglected in the formula. The fiscal deficit is the government's total expenditure and its total receipts excluding the borrowing.
c) False, Primary deficit obtained by subtracting net interest liabilities from the gross fiscal deficit. Therefore primary deficit cannot be obtained by subtracting total planned receipt and interest payment.
d) True, the fiscal deficit can be obtained by adding primary deficit and interest payment. It is because the primary deficit is determined by subtracting interest liability from the gross fiscal deficit.
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