Disinvestment =5000
Small saving 5000
Borrowings 8000
Recovery of loan 3000
Tax revenue 8000
Non tax revenue 3000
Revenue expenditure 18000
Interest payments 2000
Capital expenditure 40,000
a) Calculate revenue deficit
b) calculate fiscal deficit
c) calculate primary deficit
Dear Student
a) Revenue Deficit = (Tax Revenue + Non Tax Revenue) - Revenue expenditure
Revenue Deficit = 18000 -8000 -3000 = 7000
b) Fiscal Deficit = Total Expenditure - Total Receipts
Fiscal Deficit = (18000 + 2000 + 40000) - (5000+5000+ 3000 + 8000+ 3000 )
Fiscal Deficit = 36000
c) Primary Deficit = Fiscal Deficit - Interest Payments
Primary Deficit = 36000 - 2000
Primary Deficit = 34000
Regards
a) Revenue Deficit = (Tax Revenue + Non Tax Revenue) - Revenue expenditure
Revenue Deficit = 18000 -8000 -3000 = 7000
b) Fiscal Deficit = Total Expenditure - Total Receipts
Fiscal Deficit = (18000 + 2000 + 40000) - (5000+5000+ 3000 + 8000+ 3000 )
Fiscal Deficit = 36000
c) Primary Deficit = Fiscal Deficit - Interest Payments
Primary Deficit = 36000 - 2000
Primary Deficit = 34000
Regards