Correct Option (A):
The correct matching is A-3, B-1, C-2, D-4.
- Fiscal Deficit (A) is the excess of total expenditure over total receipts less borrowings (Explanation 3). It represents the total borrowing requirement of the government. This is calculated as Total Expenditure minus (Revenue Receipts + Non-debt Capital Receipts).
- Budget Deficit (B) is the excess of total expenditure over total receipts (Explanation 1). This term historically represented the overall difference between all receipts and all expenditures of the government.
- Revenue Deficit (C) is the excess of revenue expenditure over revenue receipts (Explanation 2). It indicates the government's inability to meet its regular, day-to-day expenses from its own revenue sources.
- Primary Deficit (D) is the excess of total expenditure over total receipts less borrowings and interest payments (Explanation 4). It is derived by subtracting interest payments from the fiscal deficit, thereby reflecting the current year's borrowing requirement excluding past debt obligations.
Incorrect Options:
Options (2), (3), and (4) contain incorrect pairings of the fiscal terms with their respective explanations. The definitions provided in the correct option are the standard economic interpretations of these budgetary concepts.