Question 38
HardOriginal questionA government's revenue deficit is ₹600 crore and its fiscal deficit is ₹1,500 crore. What share of its borrowing goes to cover the revenue deficit?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Borrowing = fiscal deficit = 1,500; of this, 600 pays for the revenue gap.
Share = 600 ÷ 1,500 × 100 = 40%.
- Concept
- Revenue deficit as a share of fiscal deficit
- Typical timeTypical
- 100 s
- Your timeYours
- —
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