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Question : A government budget shows a primary deficit of INR 6,900 crore. The revenue expenditure on interest payments is INR 400 crore. Fiscal deficit is equal to:

Option 1: INR 6,500 crore

Option 2: INR 7,300 crore

Option 3: INR 7,100 crore

Option 4: INR 6,900 crore


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: INR 7,300 crore


Solution : The correct answer is INR 7,300 crore .

A fiscal deficit is the difference between the government's total expenditure and its total revenue, excluding borrowing. It reflects the government's borrowing to meet its expenses, leading to increased debt.

Fiscal Deficit = Primary Deficit + Interest Payment

Fiscal Deficit = INR 6,900 crore + INR 400 crore

Fiscal Deficit  = INR 7,300 crore.

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