by Q. Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores.
UPSC Civil Services Examination (Prelims) 2025 – General Studies Paper I
Which of the statements given above are correct?
(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
Answer: (d) I, II and III
Explanation:
I. Revenue Deficit = ₹20,000 crores (Correct)
Revenue Deficit is calculated as Revenue Expenditure minus Revenue Receipts.
₹80,000 crores − ₹60,000 crores = ₹20,000 crores.
II. Fiscal Deficit = ₹10,000 crores (Correct)
Fiscal Deficit represents the gap between total expenditure and total receipts excluding borrowings.
Since the government’s borrowings are ₹10,000 crores, the fiscal deficit is ₹10,000 crores.
III. Primary Deficit = ₹4,000 crores (Correct)
Primary Deficit is obtained by subtracting interest payments from the fiscal deficit.
₹10,000 crores − ₹6,000 crores = ₹4,000 crores.
Answer: (d) I, II and III
