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

True

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False

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Solution

The correct option is B False
Primary deficit is the difference between fiscal deficit and interest payments.

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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

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.

Revenue deficit is estimated to be Rs. 20,000 crore, and borrowing is estimated to be Rs. 15,000 crore. If expenditure on interest payments is estimated to be 50% of the revenue deficit, find fiscal deficit and primary deficit.

Calculate Revenue Deficit, Fiscal Deficit and Primary Deficit from the following data:

Items (Rs in crore)

(i) Revenue expenditure 22,250

(ii) Capital expenditure 28,000

(iii) Revenue receipts 17,750

(iv) Capital receipts (net of borrowing) 20,000

(v) Interest payments 5,000

(vi) Borrowings 12,500

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 is the difference between revenue deficit and interest payments.

The correct option is B FalsePrimary deficit is the difference between fiscal deficit and interest payments.

The correct option is B False
Primary deficit is the difference between fiscal deficit and interest payments.