Question : From the following data about the government budget, determine Non-debt creating capital receipts.
Total receipts excluding borrowings- 1050
Revenue deficit- 600
Capital expenditure- 450
Revenue expenditure- 1600
Interest payments- 25% of revenue deficit.
Option 1: 190
Option 2: 50
Option 3: 70
Option 4: 80
Correct Answer:
50
Solution :
Non-debt creating capital receipts= Total receipts excluding borrowings - Revenue receipts
[Revenue receipts= Revenue expenditure- Revenue receipts]
= 1050- (1600-600)
= 50 crore
Hence Option B is correct.