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Question : Gross primary deficit is equal to ____________.

Option 1: difference between gross fiscal deficit and interest payments

Option 2: difference between total expenditure and total receipts

Option 3: difference between net borrowings and net capital receipts

Option 4: difference between revenue deficit and capital expenditure


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: difference between gross fiscal deficit and interest payments


Solution : The correct answer is the difference between the gross fiscal deficit and interest payments.

Gross primary deficit refers to the difference between the fiscal deficit of the current year and interest payments made on previous borrowings. It displays the government's budget deficit (interest payments excluded). The estimated borrowings of the nation's government represent the fiscal deficit; thus, the larger the deficit, the larger the government's borrowings will be.

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