Budget Deficits Types — Prelims Questions

Consider the following statements about budget deficits in India: 1. Primary deficit can be negative even when fiscal deficit is positive 2. Effective revenue deficit is always less than revenue deficit 3. FRBM Act mandates elimination of primary deficit by 2025-26. Which of the statements given above is/are correct?

Which of the following best explains why revenue deficit is considered more problematic than fiscal deficit of the same magnitude?

The concept of 'Effective Revenue Deficit' was introduced to:

If a country has a primary surplus but fiscal deficit, it indicates that:

Under the FRBM Act framework, which of the following provides flexibility during economic crises?