Question

Using budget estimates of government of India for the year 2008-09 calculate : Revenue deficit , Fiscal deficit , Primary deficit :

Answer 1

Revenue deficit = Revenue expenditure = Revenue receipts
= 658119 - 602935
= ₹ 55184 crore
Fiscal deficit = Total estimated expenditure - Total estimated receipts
= (Revenue expenditure + Capital expenditure ) - (Revenue receipts + Capital receipts excluding borrowings)
= (658119 + 92765) - (602935 + 4497 + 10165)
= 750884 - 617597
= ₹ 133287 crore `" "` ( It is equal to borrowings and other liabilities )
Primary deficit = Fiscal deficit - Interest payment
= 133287 - 190807
`(-) 57520` crore