How much are interest payments? - CUETMOCK

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Consider the data about a government budget and answer the following:

How much are interest payments?

Options:

₹ 10,000 crores

₹ 5,000 crores

₹ 7,000 crores

₹ 9,000 crores

Correct Answer:

₹ 5,000 crores

Explanation:

Interest payment = 25% of revenue deficit
Interest payment = 25 % of 20,000 crores (₹70,000 - ₹50,000)
Interest payment = ₹ 5,000 crores

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