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Question
What is primary deficit?
What is primary deficit?
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Solution
The correct option is A Fiscal deficit – Interest payment
Primary deficit is the difference between the fiscal deficit and the interest payment of the previous year. It indicates how much the government requires to borrow for purposes other than interest payment. High deficits indicate the inability of a government to manage the economy.
Primary deficit is the difference between the fiscal deficit and the interest payment of the previous year. It indicates how much the government requires to borrow for purposes other than interest payment. High deficits indicate the inability of a government to manage the economy.
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