From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:
Items (Rs in lakh)
(i) Tax revenue 50
(ii) Revenue expenditure 110
(iii) Capital expenditure 210
(iv) Non-tax revenue 30
(v) Capital receipts net of borrowing 140
(vi) Interest payments 20
(a) Revenue Deficit = Revenue expediture - Revenue receipts (Tax revenue + Non-tax revenue)
= Rs. 110 lakh - (Rs. 50 lakh + Rs. 30 lakh)
= Rs. 110 lakh - Rs. 80 lakh
= Rs. 30 lakh
(b) Fiscal Deficit = Revenue expenditure + Capital expenditure - Revenue receipts - Capital receipts net of borrowing
= Rs. 110 lakh + Rs. 210 lakh - (Rs. 50 lakh + Rs. 30 lakh) - Rs. 140 lakh
= Rs. 110 lakh + Rs. 210 lakh - Rs. 80 lakh - Rs. 140 lakh
= Rs. 320 lakh - Rs. 220 lakh
= Rs. 100 lakh
(c) Primary Deficit = Fiscal deficit - Interest payments
= Rs. 100 lakh - Rs 20 lakh
= Rs. 80 lakh
(a) Revenue deficit = Rs. 30 lakh
(b) Fiscal deficit = Rs. 100 lakh
(c) Primary deficit = Rs. 80 lakh