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The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).
A. Revenue Expenditure = 25,000
B. Capital Receipts = 30,000
C. Capital Expenditure = 35,000
D. Revenue Receipts = 20,000
E. Interest Payments = 10,000
F. Borrowings = 20,000
- a)Rs 12,000 crore
- b)Rs 10,000 croreCorrect Answer
- c)Rs 20,000 crore
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
The government budget of a hypothetical economy presents the following...
Budgetary Deficit = Total Expenditures - Total Receipts
= (Revenue Expenditure + Capital Expenditure) - (Revenue Receipts + Capital Receipts)
= (Rs 25,000 crore + Rs 35,000 crore) - (Rs 20,000 + Rs 30,000 crore)
= Rs 60,000 crore - Rs 50,000 crore
= Rs 10,000 crore
= (Revenue Expenditure + Capital Expenditure) - (Revenue Receipts + Capital Receipts)
= (Rs 25,000 crore + Rs 35,000 crore) - (Rs 20,000 + Rs 30,000 crore)
= Rs 60,000 crore - Rs 50,000 crore
= Rs 10,000 crore
Most Upvoted Answer
The government budget of a hypothetical economy presents the following...
Budgetary Deficit is the difference between the government's total expenditure and its total revenue in a given period. It represents the amount by which the government's spending exceeds its income.
Given Information:
Revenue Expenditure = 25,000 crores
Capital Receipts = 30,000 crores
Capital Expenditure = 35,000 crores
Revenue Receipts = 20,000 crores
Interest Payments = 10,000 crores
Borrowings = 20,000 crores
To calculate the Budgetary Deficit, we need to subtract the total revenue from the total expenditure:
Total Expenditure = Revenue Expenditure + Capital Expenditure + Interest Payments
Total Revenue = Revenue Receipts + Borrowings
Calculating the Total Expenditure:
Total Expenditure = Revenue Expenditure + Capital Expenditure + Interest Payments
Total Expenditure = 25,000 + 35,000 + 10,000
Total Expenditure = 70,000 crores
Calculating the Total Revenue:
Total Revenue = Revenue Receipts + Borrowings
Total Revenue = 20,000 + 20,000
Total Revenue = 40,000 crores
Calculating the Budgetary Deficit:
Budgetary Deficit = Total Expenditure - Total Revenue
Budgetary Deficit = 70,000 - 40,000
Budgetary Deficit = 30,000 crores
Therefore, the Budgetary Deficit for the hypothetical economy is Rs 30,000 crores.
Given Information:
Revenue Expenditure = 25,000 crores
Capital Receipts = 30,000 crores
Capital Expenditure = 35,000 crores
Revenue Receipts = 20,000 crores
Interest Payments = 10,000 crores
Borrowings = 20,000 crores
To calculate the Budgetary Deficit, we need to subtract the total revenue from the total expenditure:
Total Expenditure = Revenue Expenditure + Capital Expenditure + Interest Payments
Total Revenue = Revenue Receipts + Borrowings
Calculating the Total Expenditure:
Total Expenditure = Revenue Expenditure + Capital Expenditure + Interest Payments
Total Expenditure = 25,000 + 35,000 + 10,000
Total Expenditure = 70,000 crores
Calculating the Total Revenue:
Total Revenue = Revenue Receipts + Borrowings
Total Revenue = 20,000 + 20,000
Total Revenue = 40,000 crores
Calculating the Budgetary Deficit:
Budgetary Deficit = Total Expenditure - Total Revenue
Budgetary Deficit = 70,000 - 40,000
Budgetary Deficit = 30,000 crores
Therefore, the Budgetary Deficit for the hypothetical economy is Rs 30,000 crores.
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The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).A. Revenue Expenditure = 25,000B. Capital Receipts = 30,000C. Capital Expenditure = 35,000D. Revenue Receipts = 20,000E. Interest Payments = 10,000F. Borrowings = 20,000a)Rs 12,000 croreb)Rs 10,000 croreCorrect Answerc)Rs 20,000 crored)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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