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1. Revenue Expenditure - 100, 2. Capital Receipts - 40, 3. Net Borrowings - 38, Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case? -

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Question

S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case?

Options

  • high revenue expenditure

  • high capital receipts

  • low interest payments

  • high tax revenue

MCQ

Solution

high revenue expenditure

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Measures of Government Deficit Or Surpluses
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