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From the Following Data About a Government Budget, Find Out (A) Revenue Deficit, (B) Fiscal Deficit and (C) Primary Deficit: - Economics

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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

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Solution

(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

 

Concept: Deficit Budget - Primary Deficit
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