A government budget shows a primary deficit of Rs. 6,900 crore. The revenue expenditure on interest payment is Rs. 400 crore. How much is the fiscal deficit?

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Solution

Fiscal Deficit = Primary Deficit + Interest Payment

= Rs. 6,900 crore + Rs. 400 crore

= Rs. 7,300 crore

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A government budget shows a primary deficit of Rs. 6,900 crore. The revenue expenditure on interest payment is Rs. 400 crore. How much is the fiscal deficit?

Fiscal Deficit = Primary Deficit + Interest Payment = Rs. 6,900 crore + Rs. 400 crore = Rs. 7,300 crore

Fiscal Deficit = Primary Deficit + Interest Payment

= Rs. 6,900 crore + Rs. 400 crore

= Rs. 7,300 crore