CSEET · Economic and Business Environment · Indian Union Budget
In a year, the Union Government's revenue receipts are Rs 30 lakh crore, revenue expenditure is Rs 39 lakh crore, fiscal deficit is Rs 16 lakh crore and interest payments are Rs 11 lakh crore. Which statement is correct?
Revenue deficit is Rs 9 lakh crore, being revenue expenditure of Rs 39 lakh crore minus revenue receipts of Rs 30 lakh crore. Primary deficit is Rs 5 lakh crore, being the fiscal deficit of Rs 16 lakh crore minus interest payments of Rs 11 lakh crore.
- ARevenue deficit is Rs 9 lakh crore and primary deficit is Rs 5 lakh croreCorrect
- BRevenue deficit is Rs 9 lakh crore and primary deficit is Rs 27 lakh crore
- CRevenue deficit is Rs 7 lakh crore and primary deficit is Rs 5 lakh crore
- DRevenue deficit is Rs 7 lakh crore and primary deficit is Rs 27 lakh crore
Explanation
Revenue deficit = 39 - 30 = 9 lakh crore. Primary deficit = fiscal deficit - interest = 16 - 11 = 5 lakh crore. Adding interest gives 27, which is the wrong sign. The revenue deficit of 7 has no valid basis in the data.
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