question_answer

From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:
S. No.	Items	(Rs) Arab
(i)	Capital receipt net of borrowings	95
(ii)	Revenue expenditure	100
(iii)	Interest payments	10
(iv)	Revenue receipt	80
(v)	Capital expenditure	110

Answer:

(a) Revenue Deficit = Revenue Expenditure - Revenue Receipts

\[=100-80=Rs.\text{ }20\text{ }Arab\]

(b) Fiscal Deficit = Revenue Expenditure + Capital Expenditure - Revenue Receipts - Capital Receipts net of Borrowings

\[=100+110-80-95\]= Rs. 35 Arab

(c) Primary Deficit = Fiscal Deficit - Interest Payments

\[=35-10=Rs.\text{ }25\text{ }Arab\]