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Budget Deficits · Question 31 of 51

Question 31

MediumOriginal question

Revenue expenditure ₹1,200 crore, revenue receipts ₹1,000 crore, capital expenditure ₹400 crore, non-debt capital receipts ₹50 crore, interest payments ₹150 crore. The primary deficit is

Options for question 31

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. FD = (1,200 + 400) − (1,000 + 50) = 550.

  2. PD = 550 − 150 = ₹400 crore.

Worth noting

₹550 crore is the fiscal deficit; interest still has to be subtracted.

Concept
Primary deficit from raw data
Typical time
70 s
Your time
—
The rule this testsCalculating the deficits
Practise this chapter →

Ten questions from Budget Deficits, at your own pace.

Practise this chapter →

Ten questions from Budget Deficits, at your own pace.