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 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 = \( 1,200 + 2,000 = ₹ 3,200 \)
Revenue Deficit = 3,700 - 3,200 = ₹ 500 crore.
Fiscal Deficit:
Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings)
Total Expenditure = Revenue Expenditure + Capital Expenditure = \( 3,700 + 500 = ₹ 4,200 \)
Total Receipts (excluding borrowings) = Revenue Receipts + Recovery of Loans + Disinvestment = \( 3,200 + 145 + 120 = ₹ 3,465 \)
Fiscal Deficit = 4,200 - 3,465 = ₹ 735 crore.