Find (a) Fiscal deficit and (b) Primary deficit from the following:Par

1.	Find (a) Fiscal deficit and (b) Primary deficit from the following:Particulars(₹in crores)Revenue Expenditure70,000Borrowings15,000Revenue Receipt50,000Interest Payment25% of Revenue Deficit
Answer» Revenue deficit = Revenue expenditure – Revenue receipt Revenue deficit = ₹70,000 crores – ₹50,000 crores = ₹20,000 crores Interest payment = 25% of revenue deficit = ₹ 20,000 crores x 25/100 = ₹5,000 crores 1. Fiscal deficit = Borrowings = ₹ 15,000 crores 2. Primary deficit = Fiscal deficit – Interest payment Primary deficit = ₹15,000 crores – 5,000 crores = 10,000 crores

Find (a) Fiscal deficit and (b) Primary deficit from the following:Particulars(₹in crores)Revenue Expenditure70,000Borrowings15,000Revenue Receipt50,000Interest Payment25% of Revenue Deficit

Answer»

Revenue deficit = Revenue expenditure – Revenue receipt

Revenue deficit = ₹70,000 crores – ₹50,000 crores = ₹20,000 crores

Interest payment = 25% of revenue deficit = ₹ 20,000 crores x 25/100 = ₹5,000 crores

1. Fiscal deficit = Borrowings = ₹ 15,000 crores

2. Primary deficit = Fiscal deficit – Interest payment

Primary deficit = ₹15,000 crores – 5,000 crores

= 10,000 crores