Question

The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).

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. Rs 12,000 crore
• B. Rs 10,000 crore
• C. Rs 20,000 crore
• D. None of the above

Answer 1

The correct option is B

Rs 10,000 crore

Budgetary Deficit = Total Expenditures - Total Receipts

= (Revenue Expenditure + Capital Expenditure) - (Revenue Receipts + Capital Receipts)

= (Rs 25,000 crore + Rs 35,000 crore) - (Rs 20,000 + Rs 30,000 crore)

= Rs 60,000 crore - Rs 50,000 crore

= Rs 10,000 crore