Question 31
MediumOriginal questionRevenue 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
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
FD = (1,200 + 400) − (1,000 + 50) = 550.
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 timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Budget Deficits, at your own pace.