Sponsor Area

The Government : Budget And The Economy

Question
CBSEENEC12012809

From the following data about a government budget find (i) revenue deficit (ii) fiscal deficit and (iii) primary deficit.
   

(र Arab)

(i)

Tax revenue

47

(ii)

Capital receipts

34

(iii)

Non tax revenue

10

(iv)

Borrowings

32

(v)

Revenue expenditure

80

(vi)

Interest payments

20

Solution

(i) Revenue deficit = Total revenue receipts - total revenue expenditure = 80 - 47 - 10 = र 23 Arab.
(ii)    Fiscal deficit = Borrowings = र 32 Arab.
(iii)    Primary deficit = Fiscal deficit (borrowings) - interest payment = 32 - 20 = र 12 Arab.