Question

Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Types of Deficit} & \textbf{Level as \% of GDP for FY2021} \\ \hline \text{(A) Revenue Deficit} & \text{(I) 1.2} \\ \hline \text{(B) Fiscal Deficit} & \text{(II) 5.7} \\ \hline \text{(C) Primary Deficit} & \text{(III) 9.2} \\ \hline \text{(D) Current Account Deficit} & \text{(IV) 7.3} \\ \hline \end{array}\] Choose the correct answer from the options given below:

• (A) - (II), (B) - (I), (C) - (III), (D) - (IV)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
• (A) - (II), (B) - (III), (C) - (I), (D) - (IV)

Hint:

The fiscal deficit includes all borrowings, while the primary deficit excludes interest payments.

Answer 1

The Correct Option is B

Step 1: Understanding the types of deficit.
- **Revenue Deficit (A)** represents the difference between the government's revenue and its expenditure on current goods and services. For FY2021, it is **1.2%** of GDP. This corresponds to **(I)**.
- **Fiscal Deficit (B)** is the total borrowings required by the government to meet its expenditure. For FY2021, it is **5.7%** of GDP. This corresponds to **(II)**.
- **Primary Deficit (C)** is the fiscal deficit minus interest payments. For FY2021, it is **9.2%** of GDP. This corresponds to **(III)**.
- **Current Account Deficit (D)** is the difference between a country's savings and its investment. For FY2021, it is **7.3%** of GDP. This corresponds to **(IV)**.

Step 2: Conclusion.
The correct answer is **(A) - (I), (B) - (II), (C) - (III), (D) - (IV)**.