If the budgetary deficit of the gout is Rs 10000 crores and the borrowings and other liabilities are rs 12000 crores , How much will be the fiscal deficit ?
Dear student,
We know,
Budget deficit = Total Expenditure (TE) - Total Receipt (TR)
and, Fiscal Deficit = TE - TR (excluding borrowings)
then,
Fiscal Deficit = TE- ( TR - borrowings)
or, Fiscal Deficit =TE - TR + borrowings
So,
Fiscal Deficit = 10,000 + 12,000 = 22,000 cr
We know,
Budget deficit = Total Expenditure (TE) - Total Receipt (TR)
and, Fiscal Deficit = TE - TR (excluding borrowings)
then,
Fiscal Deficit = TE- ( TR - borrowings)
or, Fiscal Deficit =TE - TR + borrowings
So,
Fiscal Deficit = 10,000 + 12,000 = 22,000 cr