Question

intereste payment=575

GST=125

Dividend received=330

Recovery of loans=615

Salary paid=820

Disinvestment=320

Borrowings=1115

Escheat=480

Find :-

1. Budget deficit

2. Revenue deficit

3. Fiscal deficit

4.primary deficit

Answer 1

Answer:

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Answer 2

Given:

interest payment = 575

GST= 125

Dividend received =330

Recovery of loans =615

Salary paid =820

Disinvestment =320

Borrowings =1115

Escheat =480

To find:

Budget deficit , Revenue deficit , Fiscal deficit  and Primary deficit

Solution:

1. Budget deficit = Total expenditures – Total income

Expenditures = Interest payment + loans + salary

575 + 615 + 820 = 2,010

income = GST + dividend + Disinvestment

= 125 + 330 + 320 = 775

Thus, budget deficit

= 2,010 - 775

= 1,235

Similarly,

2. Revenue deficit = Total revenue expenditures – Total revenue receipts

Revenue expenditures = 575 + 615 + 820 = 2,010

Revenue receipts = 125 + 330 = 455

Revenue deficit

= 2,010 - 455

= 1,555

3. Fiscal deficit = Total expenditure – Total receipts excluding borrowings

Expenditure = 575 + 615 + 820 = 2,010

Receipts excluding borrowings = 125 + 330 + 320 + 480 = 1,255

Fiscal deficit

= 2,010 - 1,255

= 755  

4. Primary deficit = Fiscal deficit – Interest payment

Fiscal deficit = 755  

Interest payment = 575

Primary deficit

= 755 – 575

= 180