Question

The government budget of a hypothetical economy presents the following information. Which of the following value represents Budgetary Deficit. (all fig. in crores)
A. Revenue Expenditure $=25,000$
B. Capital Receipts $=30,000$
C. Capital Expenditure $=35,000$
D. Revenue Receipts $=20,000$
E. Interest Payments $=10,000$
F. Borrowings $=20,000$

• A. $12,000$
• B. $10,000$
• C. $20,000$
• D. None of the above

Answer 1

Answer: (B)

$10,000$

Budgetary Deficit $=$ Revenue Expenditure $+$ Capital Expenditure $-$ (Revenue Receipts $+$ Capital Receipts)
$=25,000+35,000-(20,000+30,000)=10,000$ crores.