Question

Match the following:

• A. A-II, B-II, C-III, D-IV
• B. A-II, B-I, C-III, D-IV
• C. A-I, B-II, C-IV, D-III
• D. A-III, B-IV, C-I, D-II

Hint:

Remember: \[ \text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments} \] and \[ \text{Revenue Deficit} = \text{Revenue Expenditure} - \text{Revenue Receipts} \]

Answer 1

The Correct Option is B

Concept:
Government budget has different types of deficits and expenditure categories. To solve this question, we must match each budget term with its correct formula or meaning.

Step 1: Match Primary Deficit.
Primary deficit is calculated as: \[ \text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments} \] In the question, it is given as: \[ \text{Fiscal deficit - Net interest liabilities} \] So: \[ A \rightarrow II \]

Step 2: Match Fiscal Deficit.
Fiscal deficit represents the total borrowing requirement of the government. It includes: \[ \text{Net borrowing at home + Borrowing from RBI + Borrowing from abroad} \] So: \[ B \rightarrow I \]

Step 3: Match Revenue Deficit.
Revenue deficit is: \[ \text{Revenue Deficit} = \text{Revenue Expenditure} - \text{Revenue Receipts} \] So: \[ C \rightarrow III \]

Step 4: Match Revenue Expenditure.
Revenue expenditure includes expenditure which does not create assets. It is classified into: \[ \text{Plan and non-plan expenditure} \] So: \[ D \rightarrow IV \]

Step 5: Final matching.
The correct matching is: \[ A-II,\quad B-I,\quad C-III,\quad D-IV \] Hence: \[ \boxed{\text{(B)}} \]