Macroeconomics: Government Budget and the Economy · Class 12 · CBSE · Commerce Economics
For a government, revenue receipts are ₹900 crore, revenue expenditure is ₹1,000 crore, total expenditure is ₹1,400 crore, non-debt capital receipts…
Practice question from Macroeconomics: Government Budget and the Economy (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
hard · MCQ · Q-02AC3E
For a government, revenue receipts are ₹900 crore, revenue expenditure is ₹1,000 crore, total expenditure is ₹1,400 crore, non-debt capital receipts are ₹150 crore and interest payments are ₹80 crore. Which statement is correct?
- A.Revenue deficit is ₹100 crore, fiscal deficit is ₹350 crore and primary deficit is ₹270 crore.Correct answer
- B.Revenue deficit is ₹100 crore, fiscal deficit is ₹250 crore and primary deficit is ₹170 crore.
- C.Revenue deficit is ₹350 crore, fiscal deficit is ₹100 crore and primary deficit is ₹270 crore.
- D.Revenue deficit is ₹80 crore, fiscal deficit is ₹350 crore and primary deficit is ₹100 crore.
Solution
Revenue deficit = ₹1,000 − ₹900 = ₹100 crore. Fiscal deficit = ₹1,400 − (₹900 + ₹150) = ₹350 crore. Primary deficit = Fiscal deficit − Interest payments = ₹350 − ₹80 = ₹270 crore.
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