Primary deficit is equal to _________________.

Fiscal Deficit Less Interest Payments

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Revenue Deficit Less Borrowings

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Borrowings Less Interest Payments

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Borrowings Less Fiscal Deficit

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Solution

The correct option is A Fiscal Deficit Less 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

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. Explain the meaning of the following.
(a) Revenue deficit
(b) Fiscal deficit
(c) Primary 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?

Q. In a government budget, primary deficit is

R s . 5, 000

crores and interest payment is

R s . 4, 000

crores. Now much is the fiscal 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?

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Primary deficit is equal to _________________.

The correct option is A Fiscal Deficit Less 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 A Fiscal Deficit Less 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.