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Suppose, for a given… (Class 12 Economics SQP 2026-27, Q4)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2026-27: question 4

From the official CBSE sample question paper for 2026-27, section A, question 4, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q4 · 1 mark · MCQGovernment Budget and the Economy

Suppose, for a given year, the fiscal deficit of an economy is estimated at ₹5,000 crore. The total government expenditure is ₹18,000 crore, while non-tax revenue and capital receipts (excluding borrowings) together amount to ₹3,000 crore. (Choose the correct option to fill up the blank)
The tax revenue of the government is ₹ ________ crore.

  1. (A)10,000
  2. (B)12,000
  3. (C)13,000
  4. (D)15,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Fiscal deficit equals total borrowing needs.

Hint 2

Subtract all non-borrowed receipts from expenditure.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Fiscal deficit = Total expenditure − (Revenue receipts + Non-debt capital receipts) = Total expenditure − (Tax revenue + Non-tax revenue + Non-debt capital receipts).

  2. 5,000 = 18,000 − (Tax revenue + 3,000), so Tax revenue = 18,000 − 3,000 − 5,000 = ₹ 10,000 crore. Option (A).

    1 mark

Answer: (A) 10,000

Where the marks are

  • Tax revenue = 18,000 − 3,000 − 5,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Government Budget and the Economy, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.