Question

Identify which of the following statements is true.

Options

• The difference between planned revenue expenditure and planned revenue receipts is called Fiscal deficit.

• The difference between total planned expenditure and total planned receipts is called fiscal deficit.

• The difference between total planned receipts and interest payment is called primary deficit.

• The sum of primary deficit and interest payment is called a fiscal deficit.

Answer 1

The sum of primary deficit and interest payment is called a fiscal deficit.

Explanation:

It is the difference between total expenditure and total receipts, excluding borrowings.