Primary deficit equals _____________.

Borrowings

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Interset payments

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Borrowing less interset payments

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Borrowings and interest payments both

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Solution

The correct option is C Borrowing less interset payments
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

Q. Calculate (a) Revenue Deficit, (b) Fiscal Deficit and (b) Primary Deficit from the following data:

Particulars	(Rs. in Crore)
(i) Revenue Expenditure	45,000
(ii) Borrowings	12,000
(iii) Revenue Receipts	35,000
(iv) Interest Payments	$30 %$ of Revenue Deficit

Q. The interest payments as per the government budget during a year are

R s . 13, 500 c r o r e s

, which is

30 %

of primary deficit. Calculate fiscal deficit?

Q. Primary deficit is the difference between revenue deficit and interest payments.

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.

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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Primary deficit equals _____________.

The correct option is C Borrowing less interset paymentsPrimary 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.

The correct option is C Borrowing less interset payments
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.