As per the government budget, the interest payments are estimated at $R s . 1, 60, 000$ crores. If total borrowing requirements of the government are $R s . 2, 40, 000$ crores, then how much is primary deficit.

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Solution

Primary deficit is the difference between fiscal deficit(borrowings) and interest payments.
Therefore, primary deficit = fiscal deficit - interest payments
= borrowings - interest payments
= 240000 - 160000
= 80000 crores

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As per the government budget, the interest payments are estimated at Rs.1,60,000 crores. If total borrowing requirements of the government are Rs.2,40,000 crores, then how much is primary deficit.

Primary deficit is the difference between fiscal deficit(borrowings) and interest payments.Therefore, primary deficit = fiscal deficit - interest payments = borrowings - interest payments = 240000 - 160000 = 80000 crores

As per the government budget, the interest payments are estimated at $R s . 1, 60, 000$ crores. If total borrowing requirements of the government are $R s . 2, 40, 000$ crores, then how much is primary deficit.

Primary deficit is the difference between fiscal deficit(borrowings) and interest payments.
Therefore, primary deficit = fiscal deficit - interest payments
= borrowings - interest payments
= 240000 - 160000
= 80000 crores