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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


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

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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