UPSC Prelims 2025 · Question 71 of 100
UPSC Prelims 2025 question on Revenue Deficit Calculation
- ExamUPSC CSE
- Year2025
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicPublic Finance
- DifficultyMedium
- TypeStatement
Suppose the revenue expenditure of the Government is Rs.80,000 crores and the revenue receipts of the Government are Rs.60,000 crores. The Government budget also shows borrowings of Rs.10,000 crores and interest payments of Rs.6,000 crores.
Which of the following statements are correct?
I. Revenue deficit is Rs.20,000 crores.
II. Fiscal deficit is Rs.10,000 crores.
III. Primary deficit is Rs.4,000 crores.
Select the correct answer code given below.
Show answer
Answer: D. I, II and III
Verdict
Correct statements: I, II and III → Option (d).
Statement by statement
Statement I – CORRECT: Revenue Deficit = Revenue Expenditure – Revenue Receipts = 80,000 – 60,000 = 20,000 crores.
Statement II – CORRECT: Fiscal Deficit is represented by borrowings here, i.e. Rs.10,000 crores.
Statement III – CORRECT: Primary Deficit = Fiscal Deficit – Interest Payments = 10,000 – 6,000 = 4,000 crores.