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A government spends ₹95 crore and receives ₹70 crore revenue plus ₹5 crore non-debt capital receipts. What fiscal deficit must be financed?

A₹170 crore
B₹30 crore
C₹20 crore
D₹25 crore
Answer & Solution
Correct answer: C. ₹20 crore
Non-debt receipts total ₹75 crore, so the financing gap is ₹95 − ₹75 = ₹20 crore.
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