Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Calculate Fiscal Deficit:**
This table provides data to help calculate the fiscal deficit. It includes two main items and their corresponding amounts in crore rupees.
| S.No. | Items | ₹ (in crore) |
|-------|-------------|--------------|
| (i) | Borrowings | 9,000 |
| (ii) | Interest | 300 |
### Explanation
- **S.No.:** Serial number of the items listed.
- **Items:** Categories of expenses related to the fiscal operations being measured.
- **Borrowings**: Funds borrowed by the government or entity, amounting to ₹9,000 crore.
- **Interest**: The cost of interest on borrowings, amounting to ₹300 crore.
Use this data to calculate the fiscal deficit, which reflects the difference between the government’s total revenue and total expenditure.
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