Question

The three main measures of government deficit are:

Options

• Fiscal Deficit, Trade Deficit and Primary Deficit

• Revenue Deficit, Fiscal Deficit and Primary Deficit

• Revenue Deficit, Capital Deficit and Trade Deficit

• Budget Deficit, Current Account Deficit and Fiscal Deficit

Answer 1

There are three main measures of government deficit: the Revenue Deficit, the Fiscal Deficit and the Primary Deficit. Each captures a different dimension — the consumption gap, the total borrowing requirement, and the borrowing requirement excluding interest payments on past debt.