For calculation of Primary Deficit of the Country, one of the following is deducted from Fiscal Deficit
Interest payments are deducted from the fiscal deficit to calculate the primary deficit. Thus, primary deficit = fiscal deficit - interest payments, isolating the deficit…
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For calculation of Primary Deficit of the Country, one of the following is deducted from Fiscal Deficit
Answer and explanation
Correct answer D
Interest payments are deducted from the fiscal deficit to calculate the primary deficit. Thus, primary deficit = fiscal deficit - interest payments, isolating the deficit apart from servicing past borrowing.
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Gujarat SET (GSET)