Receipts and Expenditure of the Central Government, 2020-21
|
|
(As per cent of GDP) |
|
1. Revenue Receipts (a+b) (a) Tax revenue (net of states share) (b) Non-tax revenue |
9.0 7.3 1.7 |
|
2. Revenue Expenditure of which (a) Interest payments (b) Major Subsidies (c) Defence expenditure |
11.7 3.1 1.0 0.9 |
|
3. Revenue Deficit (2-1) |
2.7 |
|
4. Capital Receipts (a+b+c) (a) Recovery of loans (b) Other receipts (mainly PSU disinvestment) (c) Borrowings and other liabilities |
4.5 0.1 0.9 3.5 |
|
5. Capital Expenditure |
1.8 |
|
6. Non-debt Receipts [2+5=7(a)+7(b)] |
10.0 |
|
7. Total Expenditure [2+5=7(a)+7(b)] (a) Plan expenditure (b) Non-plan expenditure |
13.5 - - |
|
8. Fiscal deficit [7-1-4(a)-4(b)] |
3.5 |
|
Primary Deficit [8-2(a)] |
0.4 |
Which deficit indicates the total borrowing requirements of the government from all sources?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Fiscal deficit
The fiscal deficit represents the difference between the government's total expenditure and its total revenue (excluding borrowings). It indicates the total borrowing requirements of the government to meet its expenditures.