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From the following data about the budget, determine the primary deficit.

ItemsAmount (In Rs. crore)
Revenue expenditure150
Capital receipts (excluding borrowing)105
Interest payments30
Revenue receipts120
Capital expenditure170

Solution

✅ Correct Option: 2

Fiscal deficit == Total expenditure −- (Revenue receipts ++ Non-debt capital receipts) =(150+170)−(120+105)=95= (150 + 170) - (120 + 105) = 95 crore. Primary deficit == Fiscal deficit −- Interest payments =95−30=65= 95 - 30 = 65 crore.

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