Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.4P
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Question
Consider the following budget scenario in an economy for the year.
|
Budget Estimates |
Tax Revenue (net to Centre) |
215650 |
Recoveries of Loans |
20900 |
Non-tax revenue |
84350 |
Borrowings and other Liabilities |
179100 |
Total Receipts |
500000 |
Expenditure on Revenue Account |
345000 |
Of which Interest payments |
20000 |
Total expenditure On Capital Account |
135000 |
Total Expenditure |
500000 |
Calculate :
1. Revenue Deficit
2. Fiscal Deficit
3. Primary deficit
b. Explain in brief the impact of the following:
The government of India decides to finance the widening fiscal deficit by raising more debt from the private institutions/individuals . What is this impact known as ? Explain.
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