Question

If the budgetary deficit of the government is Rs. 25,000 crores and the borrowings and other liabilities are Rs. 7,000 crores, how much will be the fiscal deficit?

• A. Rs. 25,000 crores
• B. Rs. 32,000 crores
• C. Rs. 18,000 crores
• D. Rs. 7,000 crores

Answer 1

The correct option is B Rs. 32,000 crores

Fiscal deficit is estimated as the sum total of budgetary deficit of the government and the borrowings and other liabilities.

Fiscal deficit = Budgetary deficit of the government + Borrowings and other liabilities

= 25000 crores + 7000 crores

= 32000 crores.