Question : From the following data about the government budget, determine Non-debt creating capital receipts.
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: 29000
Correct Answer:
29000
Solution :
Non-debt creating capital receipts= Total receipts excluding borrowings - Revenue receipts
= 40000- ( 16000-5000)
= 29000 crore
Hence Option D is correct.