Question

Which of the following is NOT included in the financial budget of India?

• A. Credit control
• B. Revenue deficit
• C. Primary deficit
• D. Fiscal deficit

Answer 1

Answer:

A. Credit control

• Credit control is a monetary policy tool, not typically included in the financial budget, which focuses on deficits and revenue aspects.

• The revenue deficit is targeted at 5.1% of GDP in 2021-22, which is lower than the revised estimate of 7.5% in 2020-21 (3.3% in 2019-20).

• The fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20).

• The primary Deficit in 2021-22 is 2.8% of GDP. The government aims to steadily reduce the fiscal deficit to 4.5% of GDP by 2025-26.