Question

find the value of fiscal deficit and primary deficit from
the information given below:-
1.Revenue Expenditure=₹ 1000 cr
2.Revenue Receipt=₹ 500 cr
3.Capital Expenditure=₹ 500 cr
4.Capital Receipt=₹ 1860 cr
5.interest=₹ 530 cr
6.Borrowing=₹ 950 cr
​

Answer 1

Answer:

a) Revenue deficit = revenue expenditure - revenue receipts = 45000 - 35000 = 10000

b) Fiscal deficit is equivalent to borrowings. Therefore, fiscal deficit = 12000

c) Primary deficit = fiscal deficit - interest payments = 12000 - (30 *10000) = 12000 - 3000 = 9000

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