Question : From the following data about the government budget, determine fiscal deficit.
Total receipts excluding borrowings- 40000
Revenue deficit- 5000
Capital expenditure- 45000
Revenue expenditure- 16000
Interest payments- 25% of revenue deficit.

Option 1: 19000

Option 2: 15000

Option 3: 25000

Option 4: 21000

Question

Question : From the following data about the government budget, determine fiscal deficit.
Total receipts excluding borrowings- 40000
Revenue deficit- 5000
Capital expenditure- 45000
Revenue expenditure- 16000
Interest payments- 25% of revenue deficit.

Option 1: 19000

Option 2: 15000

Option 3: 25000

Option 4: 21000

Team Careers360 · Accepted Answer

Correct Answer: 21000

Solution : Fiscal deficit = Total expenditure - total receipts excluding borrowings
[Total expenditure= Revenue expenditure+ Capital expenditure]
= (16000+45000)- 40000
= 21000 crore
Hence Option D is correct.

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