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.

Re-examination: My earlier conclusion of (c) was an error; the statement-wise analysis actually supports (d).

I. Revenue deficit = Revenue Expenditure - Revenue Receipts = 80,000 - 60,000 = 20,000 crores. Correct.

II. Fiscal deficit is the gap financed by borrowings. Since borrowings are given as 10,000 crores, fiscal deficit = 10,000 crores. Correct.

III. Primary deficit = Fiscal Deficit - Interest Payments = 10,000 - 6,000 = 4,000 crores. Correct.

Hence, I, II and III are correct. The correct answer is (d).