Question

Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Types of Deficit} & \textbf{Level as \% of GDP for FY2021} \\ \hline \text{(A) Revenue Deficit} & \text{(I) 1.2} \\ \hline \text{(B) Fiscal Deficit} & \text{(II) 5.7} \\ \hline \text{(C) Primary Deficit} & \text{(III) 9.2} \\ \hline \text{(D) Current Account Deficit} & \text{(IV) 7.3} \\ \hline \end{array}\] Choose the correct answer from the options given below:

• (A) - (II), (B) - (I), (C) - (III), (D) - (IV)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
• (A) - (II), (B) - (III), (C) - (I), (D) - (IV)

Hint:

The fiscal deficit includes all borrowings, while the primary deficit excludes interest payments.

Answer 1

The Correct Option is B

Step 1: Define deficit types.
- Revenue Deficit (A): Government revenue vs. expenditure on current goods and services. FY2021: 1.2% of GDP. Corresponds to (I).
- Fiscal Deficit (B): Total government borrowings needed for expenditure. FY2021: 5.7% of GDP. Corresponds to (II).
- Primary Deficit (C): Fiscal deficit minus interest payments. FY2021: 9.2% of GDP. Corresponds to (III).
- Current Account Deficit (D): Country's savings vs. investment. FY2021: 7.3% of GDP. Corresponds to (IV).

Step 2: Identify correct pairings.
The correct matches are (A) - (I), (B) - (II), (C) - (III), (D) - (IV).