Question

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:

Options

• ₹400 crore

• ₹300 crore

• ₹200 crore

• ₹500 crore

Answer 1

Using \[ \text{Fiscal Deficit} = \text{Total Expenditure} - (\text{Revenue Receipts} + \text{Non-Debt Creating Capital Receipts}) \], we get ₹1,200 crore − (₹800 crore + ₹100 crore) = ₹300 crore. This ₹300 crore represents the government's total borrowing requirement.