Question 35
MediumOriginal questionBudget of a state government:
| Item | ₹ crore |
|---|---|
| Tax revenue | 3,200 |
| Non-tax revenue | 800 |
| Revenue expenditure | 4,600 |
| of which interest payments | 1,000 |
| Capital expenditure | 1,400 |
| Recovery of loans | 100 |
| Disinvestment | 200 |
What is this state's revenue deficit?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Revenue receipts = 3,200 + 800 = 4,000.
Revenue deficit = 4,600 − 4,000 = ₹600 crore.
Worth noting
₹1,400 crore compares revenue expenditure with tax revenue alone and forgets non-tax revenue.
- Concept
- Revenue deficit
- Typical timeTypical
- 70 s
- Your timeYours
- —
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