Question : In a government budget, revenue receipts = 13200, revenue expenditure = 14700, capital receipts net of borrowings = 4000, capital expenditure = 17300, and interest payments = 2350, fiscal deficit will be:
Option 1: 18800
Option 2: 14800
Option 3: 17150
Option 4: 12450
Correct Answer: 17150
Solution : the correct answer is (c)17150
To calculate the fiscal deficit, we need to find the difference between the government's total expenditure and total revenue.
Total Expenditure = Revenue Expenditure + Capital Expenditure + Interest Payments
Total Expenditure = 14700 + 17300 + 2350 = 34350
Total Revenue = Revenue Receipts + Capital Receipts net of Borrowings
Total Revenue = 13200 + 4000 = 17200
Fiscal Deficit = Total Expenditure - Total Revenue
Fiscal Deficit = 34350 - 17200 = 17150
Therefore, the correct answer is (c) 17150.
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