CBSE Class 12 Economics (Part B) Previous Year Question Paper 2014
This is the CBSE Class 12 Economics (Part B) Previous Year Question Paper from 2014. It focuses on the topic "Budgetary Deficit & its Measures". The paper includes questions carrying 1 mark and 3 marks, testing fundamental concepts. Students are asked to define fiscal deficit, primary deficit, and revenue deficit, and distinguish between fiscal deficit and revenue deficit, as well as fiscal deficit and primary deficit. The implications of revenue deficit are also explored. Solving this board question paper helps students understand the exam structure, identify important concepts, and practice answering questions accurately, which is crucial for effective exam preparation and scoring well in their board exams.
Quick info
| Board | CBSE |
|---|---|
| Class | 12 |
| Subject | Economics Part B |
| Session | 2014 |
| Language | English |
| Type | Previous Year Question Paper |
| Exam type | Board Exam |
Paper pattern
The paper includes 1-mark and 3-mark questions, testing definitions, distinctions, and implications of budgetary deficit concepts.
Topics covered
Paper topics
- Budgetary Deficit
- Fiscal Deficit
- Revenue Deficit
- Primary Deficit
- Government Budget
- Economic Measures
Important topics
- Fiscal Deficit definition and calculation
- Primary Deficit definition and calculation
- Revenue Deficit definition and calculation
- Distinction between Fiscal and Revenue Deficit
- Implications of Revenue Deficit
PDF preview
Read page by page below. PDF is streamed from the official NCERT website — no download button on this page.
Question paper text
Budgetary Deficit & its Measures
1 Mark Questions
1. Define fiscal deficit. (All India 2014)
Ans. Fiscal deficit is the difference between the government's total expenditure and total receipts excluding borrowings. Fiscal Deficit = Total Budget Expenditure – Total Budget Receipts (Excluding borrowings) or Fiscal Deficit = Borrowings
2. What is 'primary deficit'? (Foreign2014)
or How is primary deficit calculated? (Delhi 2010,2008C)
Ans. The difference between fiscal deficit and interest payment is known as primary deficit. Primary Deficit = Fiscal Deficit - Interest Payments
3. What is 'revenue deficit? (All India 2013)
or What is the meaning of revenue deficit? (All India 2010)
Ans. When the revenue receipts are less than the revenue expenditures in a government budget, this shortfall is termed as revenue deficit. Revenue Deficit = Revenue Expenditure – Revenue Receipts
3 Mark Questions
- Distinguish between fiscal deficit and revenue deficit. (Delhi 2013)
Ans. Difference between fiscal deficit and revenue deficit
Basis Fiscal deficit Revenue deficit
Meaning It is the difference between total revenue and It results when revenue receipts are less than
total expenditure of the government the revenue expenditure.
(excluding borrowings). Indicator It is an indicator of the total borowings It indicates the dependency on loans in near
needed by the government. future. Arises It arises due to hike in capital expenditure. It arises when the government's actual net
receipts are lower than the projected receipts.
- Explain the meaning and implications of revenue deficit.
(All India 2011)
Ans. When the revenue receipts are less than the revenue expenditures in the government budget, this shortfall of receipts is known as revenue deficit. Implications of revenue deficit are as follows:
- High revenue deficit shows accumulated and recurring expenses of government such as expenses on defence, payment of interest, etc.
- The revenue deficit is managed by borrowing or disinvestment. Hence, high revenue deficit either increases government liability or reduction of government assets.
- High revenue deficit leads to inflationary situation in the economy, as high government expenditure increases the aggregate demand of the economy.
- High revenue deficit implies high future burden of loan and interest payments on the government.
- Distinguish between fiscal deficit and primary deficit. (All India 2010; Delhi 2009)
Ans. Difference between fiscal deficit and primary deficit
Basis Fiscal deficit Primary deficit
Meaning It is the excess of total budget expenditure It is the difference between fiscal deficit and
over the total budget receipt excluding interest payments by the government.
borrowing. Calculation It is calculated as, It is calculated as,
Fiscal Deficit = Total Budget Primary Deficit = Fiscal Deficit - Interest
Expenditure - Total Budget Receipt (excluding Payments borrowings) Scope It is broad or wide in scope. Primary deficit is the part of fiscal deficit
hence, narrow in scope.
- Give the meaning of revenue deficit, fiscal deficit and primary deficit.
(All India 2009; Delhi 2009C)
Ans. (i) Revenue deficit When the revenue receipts are less than the revenue expenditures in the government budget, this short fall is known as revenue deficit. It is calculated as
Revenue Deficit = Revenue Expenditure – Revenue Receipts
- Fiscal deficit It refers to the excess of total expenditure over the sum of revenue
receipts and capital receipts excluding borrowings. It is calculated as
Frequently asked questions
What is this document?
This is a CBSE Class 12 Economics (Part B) Previous Year Question Paper from 2014, focusing on Budgetary Deficit & its Measures.
What topics are covered in this paper?
The paper covers definitions and distinctions related to Fiscal Deficit, Revenue Deficit, and Primary Deficit, along with the implications of revenue deficit.
How can solving this PYQ help me?
Solving this previous year question paper helps you understand the exam pattern, important concepts, and how to answer questions for the CBSE Class 12 Economics board exam.
What is the marking scheme for these questions?
The paper includes questions carrying 1 mark and 3 marks, as indicated in the text.
Where can I find the answers to this paper?
The provided text includes answers for the 1-mark and 3-mark questions, explaining the definitions and distinctions.
Content reviewed by the NCERT Help team. Editorial Team and update policy
Question Papers PDF on NCERT Help. URL unchanged for search indexing.