Core Concept Summary
Module 3: Fiscal Policy & Budgetary Deficits
Fiscal policy encompasses government revenue and public expenditures. The Fiscal Deficit represents total government borrowing, while the Primary Deficit subtracts interest payments on past debt.
Module Evaluation
5-Question Knowledge Check
Score: 0 / 5
Q1. Fiscal Deficit is defined as:
Solution: Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-debt Capital Receipts).
Q2. Primary Deficit is computed as:
Solution: Primary Deficit = Fiscal Deficit - Interest Payments on previous public debts.
Q3. The Goods and Services Tax (GST) was introduced in India via which Amendment Act?
Solution: The 101st Constitutional Amendment Act 2016 created the dual GST framework.
Q4. Under which Article must the Union Government present the Annual Financial Statement?
Solution: Article 112 mandates the presentation of the Annual Financial Statement (Budget).
Q5. Disinvestment of public sector enterprise equity is accounted as:
Solution: Disinvestment liquidates government capital assets without creating recurring debt liabilities.