Question

Find borrowing by the government if payment of interest is estimated to be of $Rs.15,000$ crore which is $25\%$ of the primary deficit.

Answer 1

Given:

Interest payment $=Rs.15,000$ crores

Interest payment $=25\%$ of primary deficit

Let, Primary deficit $=x$

$\Rightarrow 25\%$ of $x=Rs.15,000$ crores

$\Rightarrow \frac{25}{100}\times x=Rs.15,000$ crores

$\Rightarrow x=Rs.15,000\times \frac{100}{25}$ crores

$\Rightarrow x=Rs.60,000$ crores

So, Primary deficit $Rs.60,000$ crores