CUET Economics 2025 13 May Shift 2 PYQs

Identify which of the following statements are correct?

(A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government.

(B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government.

(C) Primary deficit is the difference between total planned receipt and interest payments.

(D) Fiscal deficit is the sum of primary deficit and interest payment.

Choose the correct answer from the options given below:

Due to recessionary pressure in an economy, suppose the government plans a deficit budget for a given financial year.

Identify the correct sequence in which this will affect the economy.

(A) Taxes will be reduced, and public spending will increase.

(B) GDP will start rising.

(C) Aggregate demand will rise.

(D) The purchasing power of the people will increase.

Choose the correct answer from the options given below:

The Fiscal Responsibility and Budget Management Act 2003 mandates the central government to lay before both houses of parliament. Which of the three statements along with the Annual Financial Statement?