The table below shows the fiscal components of an economy's public finances over two consecutive financial years.
| Fiscal Component | Year 1 (£bn) | Year 2 (£bn) |
|---|---|---|
| Spending on public services | 280 | 310 |
| Transfer payments (welfare/pensions) | 150 | 165 |
| National debt interest payments | 45 | 55 |
| Direct tax receipts | 210 | 230 |
| Indirect tax receipts | 180 | 170 |
Based on this data, which of the following statements is correct?
The overall budget deficit increased by £45 billion\text{£}45\text{ billion}£45 billion.
The overall budget deficit increased by £35 billion\text{£}35\text{ billion}£35 billion.
The primary budget deficit increased by £45 billion\text{£}45\text{ billion}£45 billion.
The overall budget deficit increased by £30 billion\text{£}30\text{ billion}£30 billion.
44 exam-style questions on Edexcel A A Level Economics 4.5.3 Public sector finances. Each one has a worked solution and a mark scheme showing where the marks go.