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Question
On the basis of the given information, calculate the value of:
- Fiscal deficit
- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
Solution
- Fiscal Deficit = Revenue Receipts + Capital Expenditure – Non-debt creating capital receipts
= 10 + 15 – (50/100 × 20)
= ₹15 crore - Primary Deficit = Fiscal Deficit – Interest Payments
= 15 – 4
= ₹11 crore
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