Suppose the revenue expenditure is Rs.80,000 crores and the revenue receipts of the Government are Rs.60,000 crores. The Government budget also shows borrowings of Rs.10,000 crores and interest payments of Rs.6,000 crores. Which of the following statements are correct?I.Revenue deficit is Rs.20,000 crores.II.Fiscal deficit is Rs.10,000 crores.III.Primary deficit is Rs.4,000 crores.Select the correct answer using the code given below

1. A

   I and II only

   I and II only. The official set keeps III as well.

2. B

   II and III only

   II and III only. That drops I.

3. C

   I and III only

   I and III only. That drops II.

4. D

   I, II and III

   I, II and III. The paper keys all three fiscal-arithmetic lines.

Summary. Official Set A key is (d) all three. Work the identities as printed: revenue expenditure, revenue receipts and the related deficit/borrowing statements are all treated as correct on this paper. Do not drop a limb.