Question 21
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 primary deficit?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Fiscal deficit = 950 (total expenditure 2,700 − non-debt receipts 1,750).
Primary deficit = 950 − 450 = ₹500 crore.
Worth noting
₹−50 crore subtracts interest from the revenue deficit instead of the fiscal deficit.
- Concept
- Calculating the primary deficit
- Typical timeTypical
- 70 s
- Your timeYours
- —
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