Question

From the following data about a government budget, find out a) revenue deficit, b) fiscal deficit and c) Primary deficit. Items Rs in arabs Capital receipts net of borrowings 95 Revenue expenditure 100 Interest payments 10 Revenue receipts 80 Capital expenditure 110

Answer 1

Answer:

(a) Revenue deficit = 100-80= 20 arab

(b) Fiscal deficit = Total expenditure - Total receipts net of borrowings

                            = (100 + 110) - (80+95)

                            = 210 - 175 = 35 arab

(c) Primary deficit = Fiscal deficit - Interest payments

                               = 35 - 10 = 25 arab