Question 11
MediumOriginal questionA government's budget for a year:
| Item | ₹ crore |
|---|---|
| Revenue expenditure | 2,000 |
| of which interest payments | 450 |
| Capital expenditure | 700 |
| Revenue receipts | 1,600 |
| Recovery of loans | 50 |
| Disinvestment | 100 |
What is the fiscal deficit?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Total expenditure = 2,000 + 700 = 2,700; non-debt receipts = 1,600 + 50 + 100 = 1,750.
Fiscal deficit = 2,700 − 1,750 = ₹950 crore.
Worth noting
₹1,100 crore leaves out recovery of loans and disinvestment, which are non-debt receipts.
- Concept
- Calculating the fiscal deficit
- Typical timeTypical
- 70 s
- Your timeYours
- —
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