1.

From the following information , determine : (a) Capital Expenditure , (b) Total Expenditure and (c) Interest Payments :

Answer»

Solution :(a) FISCAL Deficit = Revenue Deficit + (CAPITAL EXPENDITURE - NON - debt Creating Capital Receipts)
12 , 000 crores = ₹ 9 , 000 crores + (Capital Expenditure - ₹ 10 , 000 crores )
Capital Expenditure= ₹ 12 , 000 crores - ₹ 9 , 000 crores + ₹ 10 , 000 crores
= ₹ 13 , 000 crores
(b) Total Expenditure= RevenueExpenditure+ Capital Expenditure
Revenue Expenditure= Revenue Deficit + Revenue Receipts
=₹ 9 , 000 crores + ₹ 6 , 000 crores = ₹ 15 , 000 crores
Capital Expenditure= ₹ 13 , 000 crores
Total Expenditure= ₹ 15 , 000 crores + ₹ 13 , 000 crores
= ₹ 28 , 000 crores
(c) Primary Deficit = Fiscal Deficit - Interest Payments
₹ 5 , 000 crores = ₹ 12 , 000 crores - Interest Payments
Interest Payments = ₹ 12 , 000 crores - ₹ 5 , 000 crores
= ₹ 7 , 000 crores


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