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_______ deficit includes interest payment by the government on the past loans.

  • a)
    Revenue deficit

  • b)
    Secondary deficit

  • c)
    Primary deficit

  • d)
    Fiscal deficit

Correct answer is option 'D'. Can you explain this answer?
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_______ deficit includes interest payment by the government on the pas...
Fiscal Deficit

Fiscal deficit is the difference between the government's total expenditure and its total revenue. It is an indication of the total borrowing requirements of the government. The fiscal deficit includes both borrowing from the market and the RBI, and it is an important measure of the government's financial health.

Interest Payment on Past Loans

The government borrows money from various sources such as banks, financial institutions, and international agencies. The government has to pay interest on the loans it has taken in the past. The interest payment on these loans is a part of the government's expenditure.

Fiscal Deficit Includes Interest Payment on Past Loans

The fiscal deficit includes all the expenditures of the government, including the interest payment on past loans. The interest payment on past loans is a significant part of the government's expenditure, and therefore it is included in the fiscal deficit.

Other Types of Deficits

Revenue deficit is the excess of the government's revenue expenditure over its revenue receipts. Primary deficit is the fiscal deficit minus the interest payments on past loans. Secondary deficit is the fiscal deficit minus the primary deficit.

Conclusion

The fiscal deficit is an important measure of the government's financial health. It includes all the expenditures of the government, including the interest payment on past loans. The interest payment on past loans is a significant part of the government's expenditure, and therefore it is included in the fiscal deficit.
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_______ deficit includes interest payment by the government on the pas...
Fiscal deficit is the difference between the government's total expenditure and its total revenue (excluding borrowing) in a particular financial year. It includes all the revenue and capital receipts of the government, as well as its revenue and capital expenditures, but excludes the interest payments on past loans.

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_______ deficit includes interest payment by the government on the past loans.a)Revenue deficitb)Secondary deficitc)Primary deficitd)Fiscal deficitCorrect answer is option 'D'. Can you explain this answer?
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