Question 39
HardOriginal 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 fiscal deficit?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Total expenditure = 4,600 + 1,400 = 6,000; non-debt receipts = 4,000 + 100 + 200 = 4,300.
Fiscal deficit = 6,000 − 4,300 = ₹1,700 crore.
Worth noting
₹2,000 crore forgets to subtract the non-debt capital receipts of ₹300 crore.
- Concept
- Fiscal deficit
- Typical timeTypical
- 100 s
- Your timeYours
- —
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