Question

8. If the borrowings of the government are ₹1,500 crore and interest payment is ₹ 300 crore, then fiscal deficit is
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Answer 1

one thousand three hundred cores

Answer 2

If the borrowings of the government are Rs 1500 crore and interest payment is Rs 300 crore then the fiscal deficit is 1,35,00,00,00,00.

• Fiscal Deficit Explained

1. Fiscal deficit, the condition when the expenditure of the government exceeds its revenue in a year, is the difference between the two.
2. Fiscal deficit is calculated both in absolute terms and as a percentage of the country's gross domestic product (GDP).
3. The fiscal deficit for 2020-21 was at 9.3 per cent of the gross domestic product (GDP), lower than 9.5 per cent estimated by the Finance Ministry in the revised Budget estimates, according to the CGA data.