Question : The gross primary deficit can be expressed as ______.
Option 1: Gross fiscal deficit – Net interest liabilities
Option 2: Capital expenditure – Revenue deficit
Option 3: Gross fiscal deficit + Net interest liabilities
Option 4: Revenue deficit + Capital expenditure
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Correct Answer: Gross fiscal deficit – Net interest liabilities
Solution : The correct answer is a Gross fiscal deficit – Net interest liabilities .
The gross primary deficit is a measure of a government's financial health that takes into account its fiscal deficit (the excess of total expenditure over total revenue) but subtracts the net interest payments to provide a more focused view of the government's ability to meet its primary expenditure obligations without relying on borrowed funds.
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