Question 40
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 primary deficit?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Fiscal deficit = 6,000 − 4,300 = 1,700.
Primary deficit = 1,700 − 1,000 = ₹700 crore.
Worth noting
₹2,700 crore adds interest instead of subtracting it.
- Concept
- Primary deficit
- Typical timeTypical
- 100 s
- Your timeYours
- —
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