Question

From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit: 

S. No.	Items	(Rs Arab)
(i)	Capital receipts net of borrowings	95
(ii)	Revenue expenditure	100
(iii)	Interest payments	10
(iv)	Revenue receipts	80
(v)	Capital expenditure	110

Answer 1

(a) Revenue Deficit = Revenue Expenditure − Revenue Receipts

= 100 − 80 = Rs 20 Arab

(b) Fiscal Deficit = Revenue Expenditure + Capital Expenditure− Revenue Receipts− Capital Receipts net of Borrowings

= 100 + 110 − 80 − 95

= Rs 35 Arab

(c) Primary Deficit = Fiscal Deficit − Interest Payments

= 35 − 10

= Rs 25 Arab