Question : In a government budget, total receipts is Rs.500 crore and total expenditure excluding borrowings is Rs. 100 crore. How much is the fiscal deficit?
Option 1: -1000
Option 2: -320
Option 3: 300
Option 4: 400
Correct Answer:
400
Solution :
Fiscal deficit= total expenditure - total receipts
Fisc deficit= 100-500
Fiscal deficit= Rs. 400 crore
Hence, Option D is correct.