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Economics · 2024 · 6 marks
CBSE 2024 · Region 3 · Set 1 · Q17
(a) On the basis of the given information, calculate the values of the following: (i) Fiscal Deficit (ii) Primary Deficit S.No. Items Amount (in ₹…
(a)
On the basis of the given information, calculate the values of the following :
(i)
Fiscal Deficit
(ii)
Primary Deficit
| S.No. | Items | Amount (in ₹ crore) |
| (i) | Capital Expenditure | $\displaystyle 30$ |
| (ii) | Revenue Receipts | $\displaystyle 20$ |
| (iii) | Revenue Deficit | $\displaystyle 20$ |
| (iv) | Interest Payments | $\displaystyle 10$ |
| (v) | Non-Debt Creating Capital Receipts | $\displaystyle 50$% of Revenue Receipts |
(b)
State any two examples of private goods.
(c)
Distinguish between ‘Public Provision’ and ‘Public Production’.
Marking-scheme solution
(a)
Non-Debt Creating Capital Receipts = $\displaystyle 50$% of Revenue Receipts
= $\displaystyle \frac{50}{100}$ x $\displaystyle 20$ = ₹ $\displaystyle 10$ crore
Fiscal Deficit = (iii) + (i) - Non-Debt Creating Capital Receipts
= $\displaystyle 20$ + $\displaystyle 30$ - $\displaystyle 10$
= ₹ $\displaystyle 40$ crore
Primary Deficit = Fiscal Deficit – (iv)
= $\displaystyle 40$ – $\displaystyle 10$ = ₹ $\displaystyle 30$ crore
(b)
Examples of private goods are:
Mobile phone purchased by an individual
Water bottle purchased by an individual
(c)
Public provision refers to those goods that are financed through the government budget and can be used without any direct payment by public.
Whereas;
Public production relates to those goods which are directly produced by the government.
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CBSE Class 12 Economics past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.