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Question

From the given information, calculate: (a) Revenue Recepits (b) Fiscal Deficit and (c) Primary Deficit
Particulers(Rs. in Crore)
(i) Revenue Deficit 6,000
(ii) Revenue Expenditure 11,000
(iii) Capital Expenditure 14,000
(iv) Non-debt Creating Capital Receipts 8,000
(v) Interset Payments 7,000

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Solution

a) Revenue receipts = revenue expenditure - revenue deficit = 11000 - 6000 = 5000
b) Fiscal deficit = revenue deficit + ( capital expenditure - non debt creating capital receipts ) = 6000 +(14000 - 8000) = 6000 + 6000 =12000
c) Primary deficit = fiscal deficit - interest payments = 12000 - 7000 = 5000

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