Which of the following statements is INCORRECT in the context of budget and fiscal deficit?
1
Deficit financing is the practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
2
Fiscal deficit shows the borrowing requirements of the government during the budget year.
3
Budgetary deficit is the excess of total expenditure over total receipts.
4
Primary deficit is defined as fiscal deficit of the current year plus interest payments on previous borrowings.
5
Question Not Attempted