Aspirant Academy
ENHI

RAS question

Fiscal deficit to GSDP 2023-24:

Correct answer: (C) 4.31%.

In 2023-24, Rajasthan's fiscal deficit was Rs. 65,580 crore, which was 4.31 per cent of GSDP after including additional borrowing.

  1. (A)

    6%

  2. (B)

    3%

  3. (C)

    4.31%

  4. (D)

    5%

Explanation

Rajasthan's fiscal deficit-to-GSDP ratio for 2023-24 was 4.31 per cent. The Finance Department's Economic Review states that the fiscal deficit remained at Rs. 65,580 crore in 2023-24, against Rs. 65,082 crore in the Revised Estimates. The 4.31 per cent figure is inclusive of additional borrowing ceilings of 0.50 per cent and 0.56 per cent, linked respectively to the power sector and the 50-year loan under special assistance to states for capital expenditure, so it is not the lower headline ratio. For fiscal deficit to GSDP in 2023-24, the reported ratio to use is 4.31 per cent.

Why the other options are wrong

  • (A) 6 per cent is higher than the figure reported in the Economic Review for Rajasthan's 2023-24 fiscal deficit-to-GSDP ratio.
  • (B) 3 per cent is below the Economic Review's 2023-24 ratio after including the specified additional borrowing; the reported ratio is 4.31 per cent.
  • (D) 5 per cent overstates the reported 2023-24 fiscal deficit-to-GSDP ratio; the official figure is 4.31 per cent.

Concept

This tests Rajasthan public finance, especially the use of GSDP ratios to read fiscal deficit data from the State Budget and Economic Review. It recurs in RAS because fiscal indicators are a standard way to assess state finances in the Economy of Rajasthan syllabus.

Source

Related questions