Question : From the following data about the government budget, determine fiscal deficit.
Total receipts excluding borrowings- 1050
Revenue deficit- 600
Capital expenditure- 450
Revenue expenditure- 1600
Interest payments- 25% of revenue deficit.

Option 1: 1900

Option 2: 1500

Option 3: 1200

Option 4: 1000

Question

Question : From the following data about the government budget, determine fiscal deficit.
Total receipts excluding borrowings- 1050
Revenue deficit- 600
Capital expenditure- 450
Revenue expenditure- 1600
Interest payments- 25% of revenue deficit.

Option 1: 1900

Option 2: 1500

Option 3: 1200

Option 4: 1000

Team Careers360 · Accepted Answer

Correct Answer: 1000

Solution : Fiscal deficit = Total expenditure - total receipts excluding borrowings
[Total expenditure= Revenue expenditure+ Capital expenditure]
= (1600+450)- 1050
= 1000 crore
Hence Option D is correct.

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