Identify the missing item in the following expression: _______ $=$ Fiscal Deficit $-$ Interest Payments.

Revenue Deficit

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Primary Deficient

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Both (a) and (b)

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Neither (a) or (b)

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Solution

The correct option is B Primary Deficient
Primary deficit is the difference between fiscal deficit and interest payments. The primary deficit indicates government borrowings on account of current year expenditures and current year receipts of the government.

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Similar questions

Find Primary Deficit from the following data:

Items (Rs in crore)

(i) Fiscal deficit 9,000

(ii) Interest payment by the government 900

Find (a) fiscal deficit, and (b) primary deficit from the following:

Items (Rs in crore)

Revenue expenditure = 70,000

Borrowings = 15,000

Revenue receipts = 50,000

Interest payments = 25% of revenue deficit.

48. Consider the following equations

1. Budget deficit= Total expenditure- Total Receipts

2. Primary deficit= Fiscal deficit- Interest payments

Select the correct option

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