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The Government : Budget And The Economy

Question
CBSEENEC12012871
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 1. A government budget shows a primary deficit of र4,400 crores. The revenue expenditure on interest payment is र 400 crores. How much is the fiscal deficit?
2. In a government budget revenue deficit is र 50,000 crores and borrowings are र 7500 crore. How much is the fiscal deficit? 

Solution

1. Fiscal deficit = Primary deficit + Interest payment
   = 4,400 + 400 = 4,800 crores
2. Fiscal deficit = Borrowing = र 7,500 crores

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