Question 37
HardOriginal 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 |
How much does the government borrow in the year?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Borrowing fills the gap left after all non-debt receipts, which is the fiscal deficit.
So borrowing = ₹950 crore.
- Concept
- Borrowing equals the fiscal deficit
- Typical timeTypical
- 100 s
- Your timeYours
- —
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