Question

\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ Crore)} \\ \hline (i) & \text{Tax Receipts} & 1,200 \\ \hline (ii) & \text{Revenue Expenditure} & 3,700 \\ \hline (iii) & \text{Non-Tax Receipts} & 2,000 \\ \hline (iv) & \text{Recovery of Loans} & 145 \\ \hline (v) & \text{Capital Expenditure} & 500 \\ \hline (vi) & \text{Disinvestment} & 120 \\ \hline (vii) & \text{Interest Payments} & 1,070 \\ \hline \end{array} \]

Hint:

Revenue Deficit indicates a shortfall in revenue receipts compared to revenue expenditure, while Fiscal Deficit shows the overall borrowing needs of the government.

Answer 1

Revenue Deficit: \[ {Revenue Expenditure} - ({Tax Receipts} + {Non-Tax Receipts}) \] \[ = 3,700 - (1,200 + 2,000) = 500 \, {crore} \] Fiscal Deficit: \[ ({Revenue Expenditure} + {Capital Expenditure}) - ({Tax Receipts} + {Non-Tax Receipts} + {Recovery of Loans} + {Disinvestment}) \] \[ = (3,700 + 500) - (1,200 + 2,000 + 145 + 120) = 735 \, {crore} \]