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
 
 
  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.
 
 
																   
																 
								 
              
              




 
                
             
                    
                 
								 
								 
								 
								 
								