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UPSC PYQPrelims 2025

Civil Services Examination · Question 71

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. Which of the following statements are correct? I. Revenue deficit is ₹20,000 crores. II. Fiscal deficit is ₹10,000 crores. III. Primary deficit is ₹4,000 crores. Select the correct answer using the code given below.

  1. I and II only
  2. II and III only
  3. I and III only
  4. I, II and III
Show answer & explanation

Answer: (D) I, II and III

Explanation

Revenue deficit = 80,000-60,000 = 20,000; Fiscal deficit = borrowings = 10,000; Primary deficit = fiscal deficit - interest payments = 10,000-6,000 = 4,000.