Question

\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in \( \text{Rs.} \) 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 is the shortfall of revenue receipts compared to revenue expenditure, while Fiscal Deficit includes both revenue and capital shortfalls.

Answer 1

Revenue Deficit:

Revenue Deficit = Revenue Expenditure - Revenue Receipts

Revenue Receipts = Tax Receipts + Non-Tax Receipts = Rs. 1,200 Cr. + Rs. 2,000 Cr. = Rs. 3,200 Cr.

Revenue Deficit = Rs. 3,700 Cr. - Rs. 3,200 Cr. = Rs. 500 Cr.

Fiscal Deficit:

Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings)

Total Expenditure = Revenue Expenditure + Capital Expenditure = Rs. 3,700 Cr. + Rs. 500 Cr. = Rs. 4,200 Cr.

Total Receipts (excluding borrowings) = Revenue Receipts + Recovery of Loans + Disinvestment = Rs. 3,200 Cr. + Rs. 145 Cr. + Rs. 120 Cr. = Rs. 3,465 Cr.

Fiscal Deficit = Rs. 4,200 Cr. - Rs. 3,465 Cr. = Rs. 735 Cr.