CBSE 2024, Set 2

Question

Suppose the following data is presented for an imaginary economy:

| S.No. | Items | Amount (in Crore) | |---|---|---| | (i) | Tax Receipts | 1,200 | | (ii) | Revenue Expenditure | 3,700 | | (iii) | Non-Tax Receipts | 2,000 | | (iv) | Recovery of Loans | 145 | | (v) | Capital Expenditure | 500 | | (vi) | Disinvestment | 120 | | (vii) | Interest Payments | 1,070 |

Calculate Revenue Deficit and Fiscal Deficit.

Edvaya · Accepted Answer

The correct answer is Subjective. **1. Calculation of Revenue Deficit:** Revenue Deficit = Revenue Expenditure - Revenue Receipts Revenue Receipts = Tax Receipts (i) + Non-Tax Receipts (iii) Revenue Deficit = $3,700 - (1,200 + 2,000)$ Revenue Deficit = $3,700 - 3,200 = ₹500 	ext{ crore}$. **2. Calculation of Fiscal Deficit:** Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings) Total Expenditure = Revenue Expenditure (ii) + Capital Expenditure (v) = $3,700 + 500 = 4,200$. Total Receipts (excluding borrowings) = Revenue Receipts + Recovery of Loans (iv) + Disinvestment (vi) = $3,200 + 145 + 120 = 3,465$. Fiscal Deficit = $4,200 - 3,465 = ₹735 	ext{ crore}$.

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Economics > Introductory Macroeconomics > Government Budget

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S.No.	Items	Amount (in Crore)
(i)	Tax Receipts	1,200
(ii)	Revenue Expenditure	3,700
(iii)	Non-Tax Receipts	2,000
(iv)	Recovery of Loans	145
(v)	Capital Expenditure	500
(vi)	Disinvestment	120
(vii)	Interest Payments	1,070