Question

From the following information, determine: 

(a) Capital Expenditure

(b) Total Expenditure

(c) Interest Payments

Particulars	(₹in crores)
Fiscal Deficit	12,000
Revenue Deficit	9,000
Primary Deficit	5,000
Revenue Receipts	6,000
Non- debt Capital Receipts	10,000

Answer 1

(a) Fiscal deficit= Revenue deficit + (Capital expenditure – Non-debt creating capital receipts)

₹12,000 crores= ₹9,000 + Capital expenditure- ₹10,000)

Capital expenditure= ₹12,000 crores – ₹9,000 crores + 10,000 crores = ₹13,000 crores

(b) Total expenditure = Revenue expenditure + Capital expenditure Revenue expenditure = Revenue defici + Revenue receipt

= ₹9,000 crores + ₹6,000 crores

= ₹15,000 crores

Total expenditure = Revenue expenditure + Capital 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