Question

Matching List-I and List-II, choose the CORRECT option.

	List-I		List-II
(a)	Fiscal Deficit	(i)	Difference between Government revenue expenditure and Government revenue receipts
(b)	Revenue Deficit	(ii)	Difference between Government total expenditure and Government total non-debt receipts minus interest payments
(C)	Primary Deficit	(iii)	Difference between Government total expenditure and Government total non-debt receipts

• A. (a, iii), (b, ii), (c, i)
• B. (a, iii), (b, i), (c, ii)
• C. (a, i), (b, iii), (c, ii)
• D. (a, ii), (b, i), (c, iii)

Answer 1

The Correct Option is B

To solve the question, we need to correctly match the terms in List-I with their corresponding definitions in List-II. Let us analyze each term:

1. Fiscal Deficit: This is the difference between the government's total expenditure and its total non-debt receipts. It represents the total borrowing requirements of the government. Therefore, it matches with (iii).
2. Revenue Deficit: This is the difference between the government's revenue expenditure and revenue receipts. It indicates the shortfall in the government's current income relative to current spending. Hence, it matches with (i).
3. Primary Deficit: This is the fiscal deficit minus interest payments. It shows the borrowing needs of the government excluding interest payments. This matches with (ii).

Based on the above analysis, the correct matchings are:

• (a, iii): Fiscal Deficit – Difference between Government total expenditure and Government total non-debt receipts
• (b, i): Revenue Deficit – Difference between Government revenue expenditure and Government revenue receipts
• (c, ii): Primary Deficit – Difference between Government total expenditure and Government total non-debt receipts minus interest payments

Thus, the correct option is: (a, iii), (b, i), (c, ii).