If in a year, the gross fiscal deficit of Government is ₹ 3,00,000 crores, revenue deficit is ₹…
Primary deficit equals fiscal deficit minus interest payments: ₹300, 000 crore−₹80, 000 crore=₹220, 000 crore. Revenue deficit is not subtracted in this definition. The…
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If in a year, the gross fiscal deficit of Government is ₹ 3,00,000 crores, revenue deficit is ₹ 1,50,000 crores and interest payments are ₹ 80,000 crores, which of the following is the primary deficit of the Government in the year ?
Answer and explanation
Correct answer C
Primary deficit equals fiscal deficit minus interest payments: ₹300, 000 crore−₹80, 000 crore=₹220, 000 crore. Revenue deficit is not subtracted in this definition. The offered ₹70, 000 crore, ₹23, 000 crore and ₹150, 000 crore do not implement the primary-deficit identity.
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UGC NET Economics