Which of the following deficits is not mentioned in the budget statem...
Four types of deficits are mentioned in the budget statement, namely primary, revenue, budget and fiscal.
Which of the following deficits is not mentioned in the budget statem...
The correct answer is option 'D' - Secondary deficit.
Primary Deficit:
The primary deficit refers to the difference between the government's total expenditure excluding interest payments and its total revenue. In other words, it represents the excess of government spending over revenue, excluding interest payments. It is an important measure to understand the government's fiscal position as it focuses on the government's ability to generate enough revenue to cover its non-interest expenses.
Revenue Deficit:
The revenue deficit represents the excess of government's revenue expenditure over its revenue receipts. It is an indication that the government's regular income is insufficient to meet its regular expenses. Revenue deficit can be seen as an indicator of the government's borrowing requirements to finance its day-to-day operations.
Budget Deficit:
The budget deficit represents the excess of government's total expenditure over its total revenue, including both revenue receipts and capital receipts. It indicates the shortfall of government's income to cover all its expenses, including interest payments. A budget deficit implies that the government needs to borrow money or draw from its reserves to bridge the gap between expenditure and revenue.
Secondary Deficit:
The term "secondary deficit" is not commonly used in budget statements or fiscal literature. It is not a recognized category of deficit. Therefore, it is not mentioned in the budget statement.
In conclusion, the correct answer is option 'D' - Secondary Deficit, as it is not a recognized category of deficit mentioned in budget statements. Primary deficit, revenue deficit, and budget deficit are all commonly used measures to assess the government's fiscal position.