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Budget Deficits · Question 36 of 51

Question 36

MediumOriginal question

Revenue receipts are ₹900 crore and revenue expenditure is ₹1,000 crore, of which interest is ₹120 crore. The revenue deficit is

Options for question 36

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Revenue deficit = 1,000 − 900 = ₹100 crore; interest is already inside revenue expenditure.

Worth noting

₹220 crore adds the interest a second time.

Concept
Interest inside revenue expenditure
Typical time
70 s
Your time
—
The rule this testsCalculating the deficits
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