Directions: Study the table carefully and answer the questions given below it.

Centre's gross fiscal deficit and its financing (in Rupees)

Years
Fiscal
deficit
Market
borrowings
Other
liablities
Budget
deficit
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
68814
71354
77844
99048
114848
80066
31437
44198
31123
43500
75022
68572
43945
28142
41661
67362
45793
32750
1072
10918
24295
1020
4345
_______
1
The average of market borrowings is what percent of the total fiscal deficit over the years?
» Explain it
C

Total value of Market Borrowing
= 31437 + 44198 + 31123 + 43500 + 75022 + 68572
= 293852

Avg of Market Borrowing
1 (293852)
6
= 48975.33 ≈ 48975 crore

Total fiscal deficit
= (68814 + 71354 + 77844 + 99048 + 114848 + 80066)
= 511974

Required percent
48975   = 9.56 %
511974

Hence, option C is correct.

2
What is the average budget deficit from the 2005-06 to 2009-10?
» Explain it
A

Total value of budget deficit

=   1072 + 10918 + 24295 + 1020 + 4345

=    41650


Avg of budget deficit

=    1 (41650)
5

=   Rs 8330 crore


Hence, option A is correct.


3
In which year is the per cent of other liabilities is highest with respect to fiscal deficit?
» Explain it
B

Take reverse operation,

in 2005-06 =  68  ≈ 1.6
43

in 2006-07 =   71  ≈ 2.5
28

in 2007-08 =  77  ≈ 1.8
41

in 2008-09 =  99  ≈ 1.4
67

in 2009-10 =  114  ≈ 2.5
45

in 2010-11 =  80  ≈ 2.5
32


Hence, it will be highest the year 2008-09.

Hence, option B is correct.

4
In which year the fiscal deficit increases by the maximum amount from previous year?
» Explain it
C
In such type the problems, there is no need of paper work. By approximation you can easily calculate it, Whenever you are trying to find your answer by using approximation, you must calculate your calculation by taking the digits at the higher priority. From the column of fiscal deficit, it is clear that it increased by the maximum amount in the year 2008-2009.

Hence, option C is correct.
 
5
In which year the ratio of fiscal deficit to market borrowing is almost the same?
» Explain it
B

Ratio of fiscal deficit to market borrowing

in 2005-06 =  68814  ≃   68  = 2.19
31437 31

in 2006-07 =  71354  ≃   71  = 1.61
44198 44

in 2008-09 =  99048  ≃   99  = 2.30
43500 43

in 2010-11 =  80066  ≃   80  = 1.17
68572 75


Thus, for the years 2005-06 and 2008-09, the market borrowing is almost the same.

Hence, option B is correct.

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