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Question
On the basis of the given information, calculate the value of:
- Fiscal deficit
- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
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Solution
Non-debt creating capital receipts = 50% of Revenue Receipts
= 50% of 20
= 10 crore
Revenue Deficit = Revenue Expenditure − Revenue Receipts
10 = Revenue Expenditure − 20
Revenue Expenditure = 10 + 20
= 30 crore
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 30 + 15
= 45 crore
Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-debt creating capital receipts)
= 45 − (20 +10)
= 45 − 30
= 15 crore
Primary Deficit = Fiscal Deficit – Interest Payments
= 15 − 4
= 11 crore
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