Primary deficit in a government budget is ___________________.

Revenue expenditure - Revenue receipts

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Total expenditure -Total receipts

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Revenue deficit - Interest payments

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Fiscal deficit - interest payments

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Solution

The correct option is D Fiscal deficit - interest 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

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?

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

Q. Very short answer type question:
A government budget shows a primary deficit of Rs. 4,400 crores. The revenue expenditure on interest payment is Rs. 400 crores. How much is the fiscal deficit?

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.

Q. Match List I with List II and select the correct answer using the codes given below the lists:

List I (Term)	List II (Explanation)
A. Fiscal deficit	1. Excess of total expenditure over receipts
B. Budget deficit	2. Excess of revenue expenditure
C. Revenue deficit	3. Excess of total expenditure over total receipts less borrowings
D. Primary deficit	4. Excess of total expenditure over total receipts less borrowings and interest payments

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Primary deficit in a government budget is ___________________.

The correct option is D Fiscal deficit - interest 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 D Fiscal deficit - interest 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.