Which of the following is/are correct about India's 'primary deficit'?
1. This is the fiscal deficit after deducting the cost of interest payment.
2. Falling fiscal deficit and rising primary deficit is considered good.
3. Interest payment constitutes around 82 per cent of India's fiscal deficit.

Only 1

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Only 2

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1 and 2

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1,2 and 3

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Solution

The correct option is D 1,2 and 3
India's fiscal deficit for 2016-2017 was 3.5 per cent while the primary deficit was 0.3 per cent. It means, the cost of interest payment was 3.2 per cent (Union Budget 2017-18).

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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

If primary deficit is Rs 6,900 and interest payment is Rs 600, then fiscal deficit is :

Find Primary Deficit from the following data:

Items (Rs in crore)

(i) Fiscal deficit 9,000

(ii) Interest payment by the government 900

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.

Q. Primary deficit = Fiscal deficit –

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Which of the following is/are correct about India's 'primary deficit'?1. This is the fiscal deficit after deducting the cost of interest payment.2. Falling fiscal deficit and rising primary deficit is considered good.3. Interest payment constitutes around 82 per cent of India's fiscal deficit.

The correct option is D 1,2 and 3India's fiscal deficit for 2016-2017 was 3.5 per cent while the primary deficit was 0.3 per cent. It means, the cost of interest payment was 3.2 per cent (Union Budget 2017-18).

Which of the following is/are correct about India's 'primary deficit'?
1. This is the fiscal deficit after deducting the cost of interest payment.
2. Falling fiscal deficit and rising primary deficit is considered good.
3. Interest payment constitutes around 82 per cent of India's fiscal deficit.

The correct option is D 1,2 and 3
India's fiscal deficit for 2016-2017 was 3.5 per cent while the primary deficit was 0.3 per cent. It means, the cost of interest payment was 3.2 per cent (Union Budget 2017-18).