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

Correct Answer: (D) I, II and III

Calculating government budget deficits from standard economic definitions: Revenue Deficit $=$$\text{Revenue Expenditure}$ - $\text{Revenue Receipts}$ = 80,000 - 60,000 = $\text{₹ }$ 20,000$\text{ crores}$ (Statement I is correct). Fiscal Deficit is fundamentally defined as total net government borrowings, which equals ₹ 10,000 crores (Statement II is correct). Primary Deficit $=$$\text{Fiscal Deficit}$ - $\text{Interest Payments}$ = 10,000 - 6,000 = $\text{₹ }$ 4,000$\text{ crores}$ (Statement III is correct). Thus, statements I, II and III are all correct.