Primary deficit in a government budget equals ___________.

Interest payments

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Interest payments less borrowings

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Borrowings less interest payments

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None of the above

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Solution

The correct option is C Borrowings less interest payments
Primary deficit is the difference between fiscal deficit and interest payments. Since, borrowings is equivalent to fiscal deficit, we can say, primary deficit in a government budget is the difference between borrowings and interest payments.

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Primary deficit in a government budget equals ___________.

The correct option is C Borrowings less interest paymentsPrimary deficit is the difference between fiscal deficit and interest payments. Since, borrowings is equivalent to fiscal deficit, we can say, primary deficit in a government budget is the difference between borrowings and interest payments.

The correct option is C Borrowings less interest payments
Primary deficit is the difference between fiscal deficit and interest payments. Since, borrowings is equivalent to fiscal deficit, we can say, primary deficit in a government budget is the difference between borrowings and interest payments.