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Discussion

Budgetary deficit of the government is equal to:

  • A.Total plan and non plan expenditure minus revenue receipts
  • B.Total capital expenditure minus capital receipts
  • C.Total expenditure minus revenue receipts plus capital receipts
  • D.Total expenditure minus market borrowings

Answer: C

The budgetary deficit is the total expenditure less the total receipts, that is the revenue receipts plus capital receipts (excluding borrowing in the usual definition). So the expression total expenditure minus revenue receipts plus capital receipts expresses the item as the key states. The answer is option C.

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