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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


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

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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