From the following data about a Government budget, find out fiscal deficit:
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: ₹35 crore
Total expenditure = Capital + Revenue
Total expenditure = 110 + 100 = ₹210 crores
Note: Interest payments of ₹10 crores are already included in revenue expenditure of ₹100 crores. Hence, not counted separately.
Total receipts = Capital receipts (net of borrowing) + Revenue receipts
Total receipts = Capital receipts (net of borrowing) + Tax Revenue receipts + Non tax revenue receipts
Total receipts = 95 + 60 +20 = ₹175 crores
Fiscal deficit =Total expenditure – Total receipts (excluding borrowings)
Fiscal deficit = 210 – 175 = ₹35 crores