Calculate 1. fiscal deficit, 2. revenue deficit and 3. primary defi

1.	Calculate 1. fiscal deficit, 2. revenue deficit and 3. primary deficit on the basis of the facts given below. Borrowing – 40,000 Budget deficit – 60,000 Revenue receipts – 60,000 Interest payments – 20,000 Revenue expenditure – 80,000
Answer» 1. Fiscal deficit = Budget deficit + borrowing = 60000 + 40000 = 1,00,000 2. Revenue deficit = Revenue expenditure – Revenue receipts = 80000 – 60000 = 20,000 3. Primary deficit = Fiscal deficit – Interest payments = 100000 – 20000 = 80,000

Calculate 1. fiscal deficit, 2. revenue deficit and 3. primary deficit on the basis of the facts given below. Borrowing – 40,000 Budget deficit – 60,000 Revenue receipts – 60,000 Interest payments – 20,000 Revenue expenditure – 80,000

Answer»

1. Fiscal deficit = Budget deficit + borrowing

= 60000 + 40000 = 1,00,000

2. Revenue deficit = Revenue expenditure – Revenue receipts

= 80000 – 60000 = 20,000

3. Primary deficit = Fiscal deficit – Interest payments

= 100000 – 20000 = 80,000