Match List-I with List-II and select the correct answer using the code given below the Lists : List-I List-n (Type of Deficit) (Explanation) A. Fiscal Deficit 1. Total Expenditure - Revenue Receipts 8s Non-debt Capital Receipts B. Revenue Deficit 2. Revenue Expenditure -Revenue Receipts C. Effective Revenue 3. Revenue Deficit -Deficit Grants for Creation of Capital Assets D. Primary Deficit 4. Fiscal Deficit - Interest Payments Code :

The definitions of various budgetary deficits are fundamental to fiscal accounting in India. Fiscal Deficit (A) represents the total borrowing requirement and is calculated as Total Expenditure minus the sum of Revenue Receipts and Non-debt Capital Receipts [4]. Revenue Deficit (B) measures the excess of revenue expenditure over revenue receipts, indicating a shortfall in meeting current consumption needs [4]. Effective Revenue Deficit (C) is a refined concept introduced to exclude grants given to states for the creation of capital assets from the revenue deficit, as these grants lead to asset formation despite being classified as revenue expenditure [5]. Primary Deficit (D) is derived by subtracting interest payments on previous debt from the current fiscal deficit, thereby highlighting the government's current fiscal health and borrowing needs excluding past obligations [3]. Matching these definitions leads to the sequence 1, 2, 3, 4.

Sources

1. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.2.1 Measures of Government Deficit > p. 72
2. [4] https://www.indiabudget.gov.in/doc/budget_at_glance/bag1.pdf
3. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Effective revenue deficit' and 'effective capital expenditure' > p. 154
4. [5] https://www.hansrajcollege.ac.in/hCPanel/uploads/elearning/elearning_document/G_E__Public_Finance,_B_Com_(H)-4th_Sem-Part-B-Unit-3-Budget_at_a_Glance_Note.pdf
5. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.5 Government Deficits > p. 153