Question

In a government budget, revenue receipt =Rs 14,200, revenue expenditure =Rs 15,700,capital receipts net of borrowings=Rs 5,000,capital expenditure = Rs 18,300, and interest payments = Rs 3,350, fiscal deficit will be: *​

Answer 1

ANSWER :

★ Rs. 14,800

• ❖ In a government budget, if Revenue Receipt is Rs 14,200; Revenue Expenditure is Rs. 15,700; Capital Receipts Net of Borrowings is Rs. 5,000; Capital Expenditure is Rs. 18,300 and Interest Payments is Rs. 3,350; then Fiscal Deficit will be Rs. 14,800

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SOLUTION :

❒ Given :-

• Revenue Receipt = Rs 14,200

• Revenue Expenditure = Rs. 15,700

• Capital Receipts Net of Borrowings = Rs. 5,000

• Capital Expenditure = Rs. 18,300

• Interest Payments = Rs. 3,350

❒ To Calculate :-

• Fiscal Deficit = ?

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❒ Calculation :-

Here,

• Revenue Expenditure = Rs. 15,700

• Revenue Receipt = Rs 14,200

• Capital Expenditure = Rs. 18,300

• Capital Receipts Net of Borrowings = Rs. 5,000

Using the formula of Fiscal Deficit, we get,

• ✪ Fiscal Deficit = (Revenue Expenditures - Revenue Recepits) + (Capital Expenditures - Capital Receipts Net of Borrowings)

⇒ Fiscal Deficit = (Rs. 15,700 - Rs. 14,200) + (Rs. 18,300 - Rs. 5,000)

⇒ Fiscal Deficit = Rs. 1,500 + Rs. 13,300

∴ Fiscal Deficit = Rs. 14,800

Or,

Using the formula of Fiscal Deficit, we get,

• ✪ Fiscal Deficit = (Revenue Expenditures + Capital Expenditures) - (Revenue Receipts + Capital Receipts Net of Borrowings)

⇒ Fiscal Deficit = (Rs. 15,700 + 18,300) - (Rs. 14,200 + 5,000)

⇒ Fiscal Deficit = Rs. 34,000 - Rs. 19,200

∴ Fiscal Deficit = Rs. 14,800

Answer 2

Answer:

The amount of fiscal deficit is 14,800,

Explanation:

In this question, we have to calculate the amount of fiscal deficit of the government. In the question, it is given that the revenue receipt is 14,200. revenue expenditure is 15,700, capital receipts are 5,000, and capital expenditure is 18,300. The fiscal deficit means the situation in which the expenditure of a country exceeds the revenue of the country. In the fiscal deficit it is calculated by which amount expenditure exceeds the revenue.

To calculate the fiscal deficit we subtract the revenue from the expenditure but while calculating the fiscal deficit we does not include the interest expenditure.

$Fiscal= (Capital Expenditure+ Revenue Expenditure)- (Revenue Receipt+ Capital Receipt)$

$Fiscal= (15,700+18,300)- (14,200+5,000)\\ = 14,800$

Hence, the amount of the fiscal deficit of the government is 14,800.

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