In a given fiscal year, a government's budgetary projections are presented as follows:
| Budget Component | Amount (₦ billion) |
|---|---|
| Recurrent Revenue | 450 |
| Capital Revenue | 150 |
| Recurrent Expenditure | 380 |
| Capital Expenditure | 320 |
Based on the table above, what is the magnitude of the government's budget deficit in billions of Naira?
Answer: 100 billion Naira
Answer
The magnitude of the government's budget deficit is 100 billion Naira.
The budget deficit is determined by finding the difference between total expenditure and total revenue. Total revenue equals ₦450 billion + ₦150 billion = ₦600 billion. Total expenditure equals ₦380 billion + ₦320 billion = ₦700 billion. The budget deficit is therefore ₦700 billion - ₦600 billion = ₦100 billion.
Step-by-Step Solution
Key Concept
Budget Deficit Calculation