Question

From the following data about a  government budget calculate Primary deficit:

            Items                        ( amount in rupees)

Revenue deficit                    40

Non-debt creating capital receipts             190

Tax revenue                        125

Capital expenditure                    220

Interest payment                      20​

Answer 1

Answer:

Items                        ( amount in rupees)

Revenue deficit                    40

Non-debt creating capital receipts             190

Tax revenue     Items                        ( amount in rupees)

Revenue deficit                    40

Non-debt creating capital receipts             190

Tax revenue                        125

Capital expenditure                    220

Interest payment                      20..                  125

Capital expenditure                    220

Interest payment                      20

Answer 2

Primary deficit= 1,180

Explanation:

• Revenue deficit                                           40
• Non-debt creating capital receipts            190
• Tax revenue                                                125
• Capital expenditure                                    220
• Interest payment                                         20​

1. Fiscal deficit = revenue deficit + (capital expenditure - non debt creating capital receipts) = 40 + (220 - 190) = 40 (30) = 1,200                                         Therefore, Fiscal deficit = 1,200
2. Primary deficit = fiscal deficit - interest payments = 1,200 - 20 = 1,180 Therefore, Primary deficit = 1,180

What is Primary deficit?

Primary Deficit is the difference between the fiscal deficit for the current year (total revenue less total government expenses) and the interest paid on borrowings from the prior year.

To learn more about Primary Deficit, use the given links:

https://brainly.in/question/12999268

https://brainly.in/question/47327904

#SPJ3