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Question
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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Solution
Considering the data represented in the given diagram, trend of year-on-year deficit (reporting for April to November) may be stated as follows:
- Fiscal Deficit in 2020 increased to 10.8 lakh crore from 8.1 lakh crore in 2019. In 2021 it has gone down to 7 lakh crore.
- Primary Deficit in 2020 increased to 6.9 lakh crore from 4.7 lakh crore in 2019. In 2021 it has gone down to 2.4 lakh crore.
- Fiscal Deficit in 2020 increased to 135.1% of Budget Expenditure from 114.8% in 2019. In year 2021, it is 46.2% of Budget Expenditure.
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| S.No. | Items | 2021-22 (₹ in crore) |
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| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
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If Total Expenditure is ₹1,200 crore, Revenue Receipts are ₹800 crore and Non-Debt Creating Capital Receipts are ₹100 crore, the Fiscal Deficit equals:
