Question

Distinguish between ‘Revenue deficit’ and ‘Primary deficit’.

Hint:

Focus on the components of fiscal deficit when distinguishing revenue and primary deficits.

Answer 1

\[ \begin{array}{|c|c|} \hline \textbf{Revenue Deficit} & \textbf{Primary Deficit} \\ \hline \text{Refers to the excess of revenue expenditure over revenue receipts.} & \text{Refers to the fiscal deficit excluding interest payments.} \\ \text{Indicates the inability of the government to meet its regular expenses from its regular income.} & \text{Indicates the borrowing requirement of the government to meet current expenses, excluding interest payments.} \\ \hline \end{array} \]