From the following information, determine: (a) Capital Expenditure(b)

1.	From the following information, determine: (a) Capital Expenditure(b) Total Expenditure(c) Interest PaymentsParticulars(₹in crores)Fiscal Deficit12,000Revenue Deficit9,000Primary Deficit5,000Revenue Receipts6,000Non- debt Capital Receipts10,000
Answer» (a) Fiscal deficit= Revenue deficit + (Capital expenditure – Non-debt creating capital receipts) ₹12,000 crores= ₹9,000 + Capital expenditure- ₹10,000) Capital expenditure= ₹12,000 crores – ₹9,000 crores + 10,000 crores = ₹13,000 crores (b) Total expenditure = Revenue expenditure + Capital expenditure Revenue expenditure = Revenue defici + Revenue receipt = ₹9,000 crores + ₹6,000 crores = ₹15,000 crores Total expenditure = Revenue expenditure + Capital expenditure =₹15,000 crores + ₹13,000 crores = ₹28,000 crores (c) Primary deficit = Fiscal deficit – Interest payments ₹5,000 crores = ₹12,000 crores – Interest Payments Interest Payments = ₹12,000 crores – ₹5,000 crores = ₹7,000 crores

From the following information, determine: (a) Capital Expenditure(b) Total Expenditure(c) Interest PaymentsParticulars(₹in crores)Fiscal Deficit12,000Revenue Deficit9,000Primary Deficit5,000Revenue Receipts6,000Non- debt Capital Receipts10,000

Answer»

(a) Fiscal deficit= Revenue deficit + (Capital expenditure – Non-debt creating capital receipts)

₹12,000 crores= ₹9,000 + Capital expenditure- ₹10,000)

Capital expenditure= ₹12,000 crores – ₹9,000 crores + 10,000 crores = ₹13,000 crores

(b) Total expenditure = Revenue expenditure + Capital expenditure Revenue expenditure = Revenue defici + Revenue receipt

= ₹9,000 crores + ₹6,000 crores

= ₹15,000 crores

Total expenditure = Revenue expenditure + Capital expenditure

=₹15,000 crores + ₹13,000 crores

= ₹28,000 crores

(c) Primary deficit = Fiscal deficit – Interest payments

₹5,000 crores = ₹12,000 crores – Interest Payments

Interest Payments = ₹12,000 crores – ₹5,000 crores

= ₹7,000 crores