Question

In a government budget, revenue deficit is 50,000 crores and borrowings are Rs. 75,000 crores. The fiscal deficit will be ______________.

• A. Rs. 25,000 crores
• B. Rs. 75,000 crores
• C. Rs. 1,25,000 crores
• D. Rs. 50,000 crores

Answer 1

The correct option is A Rs. 25,000 crores

Borrowings are equivalent to gross fiscal deficit.

Fiscal deficit= Borrowings - revenue deficit

= 75,000 crores - 50,000 crores

= 25,000 crores.