From the following data, Calculate Primary Deficit.
Rs (crore) Revenue expenditure 22,250 Capital expenditure 28,000 Revenue receipts 17,750 Capital receipts (net of borrowing) 20,000 Interest payment 5,000 Borrowings 12,500
From the following data, Calculate Primary Deficit.
| Rs (crore) | |
|---|---|
| Revenue expenditure | 22,250 |
| Capital expenditure | 28,000 |
| Revenue receipts | 17,750 |
| Capital receipts (net of borrowing) | 20,000 |
| Interest payment | 5,000 |
| Borrowings | 12,500 |
Solution
✅ Correct Option: 1
Fiscal Deficit equals Borrowings, which is Rs 12,500 crore. Primary Deficit = Fiscal Deficit - Interest Payment = crore. Hence Primary Deficit is Rs 7,500 crore.
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