From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:
(Rs. Arab)
(i) Capital receipts net of borrowings 95
(ii) Revenue expenditure 100
(iii) Interest payments 10
(iv) Revenue receipts 80
(v) Capital expenditure 110
(a) Computation of Revenue Deficit:
Revenue deficit= Revenue expenditure –Revenue receipts
Revenue expenditure = 100
Revenue receipts = 80
Revenue Deficit = 100-80 = Rs 20 arab
(b) Computation of Fiscal deficit:
Fiscal deficit = Revenue Expenditure + Capital Expenditure - Revenue Receipts - Capital Receipts net of Borrowings
= 100+110 – 80-95 = Rs 35 arabs
(c) Computation of Primary Deficit:
Primary deficit = Fiscal deficit - Interest payment
= 35- 10= Rs 25 arab.
