Solved Numericals On Various Deficits PDF
Solved Numericals On Various Deficits PDF
Question 1
In a government budget, the revenue deficit is ₹ 35 crores. If revenue receipts are ₹70
crores and capital expenditure ₹120 crores, then how much is the revenue expenditure.
Solution:
Revenue Defici = Revenue Expenditure – Revenue Receipt
₹35 crores = Revenue Expenditure – ₹70 crores
Revenue Expenditure = ₹35 crores + 70 crores
= ₹105 crores
Question 2
The interest requirement as per the government budget during a year are ₹1,40,000
crores. If total borrowing requirements of the government are estimated at 2,70,000
crores, then how much is a primary deficit.
Solution:
Total borrowing requirements of the government are estimated at ₹ 2,70,000 crores. It means,
Fiscal deficit = ₹ 2,70,000
Primary deficit = Fiscal Deficit – Interest Payment
Primary Deficit = ₹ 2,70,000 crores – ₹ 1,40,000 crores
= ₹ 1,30,000 crores.
Question 3
In a government budget, the primary deficit is ₹ 12,000 crores and interest payment is ₹
7,000 crores. How much is the fiscal deficit?
Solution:
Primary deficit = Fiscal deficit – Interest payment
₹12,000 crores = Fiscal Deficit – ₹ 7,000 crores
Fiscal Deficit = ₹12,000 crores + ₹ 7,000 crores
= ₹ 19,000 crores
Question 4
As per the government budget, the interest payments are estimated at ₹ 10,000 crores,
which is 40% of primary deficit. Calculated fiscal deficit?
Solution:
Let, Primary defict = x
₹10,000 crores = 40% of x = 0.40 x
x= ₹10,000 crores / 0.40 = ₹25,000 crores
Primary Deficit = Fiscal deficit – Interest payment
₹25,000 crores = Fiscal defict – ₹10,000 crores
Fiscal deficit = ₹25,000 crores + ₹10,000 crores
= ₹35,000 crores
Explore link: Excess Demand and Deficient Demand
Question 5
Find (a) Fiscal deficit and (b) Primary deficit from the following: