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Question

From the following data about a government budget, find out (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in crore)

(i) Revenue receipts 55

(ii) Capital receipts 42

(iii) Non-tax revenue 18

(iv) Borrowings 40

(v) Revenue expenditure 88

(vi) Interest payments 28

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Solution

(a) Revenue Deficit = Revenue expenditure - Revenue receipts

= Rs. 88 crore - Rs. 55 crore

= Rs. 33 crore

(b) Fiscal Deficit = Borrowings

= Rs. 40 crore

(c) Primary Deficit = Fiscal deficit - Interest payments

= Rs. 40 crore - Rs. 28 crore

= Rs. 12 crore

(a) Revenue deficit = Rs. 33 crore

(b) Fiscal deficit = Rs. 40 crore

(c) Primary deficit = Rs. 12 crore


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