Question : From the following data calculate revenue deficit-
Capital receipts net of borrowings- 200
Revenue expenditure- 100
Interest payments- 50
Revenue receipts- 80
Capital expenditure- 600
Option 1: 440
Option 2: 420
Option 3: 430
Option 4: 450
Correct Answer:
420
Solution :
Fiscal deficit= (Revenue expenditure + capital expenditure) - (Revenue receipts + capital receipts net of borrowings)
= (100+600)-(80+200)
= 420 crore
Hence Option B is correct.