Question

Calculate fiscal deficit ?

Capital receipt 68
Interest payment 20
Borrowing. 32
Tax revenue. 50
Non tax revenue. 10

Answer 1

Answer:

Explanation:fiscal deficit = borrowing

So answer is 32

Answer 2

Since fiscal deficit = borrowing, So the answer is, fiscal deposit = 32.

The occurrence of fiscal deficit takes place when the total expenditure of a government exceed the generation of revenue, excluding money available from borrowings.

A deficit is different from debt, which means the accumulation of yearly deficits.

Fiscal deficit means the excess remains from government expenditure overall receipts except borrowing.  

It is easy to consider that borrowing can be termed as a receipt, but it cannot be assumed as revenue for the government.

Thus, the term total receipt is used instead of total revenue to include borrowing.