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Question
Primary deficit in a government budget is : (Choose the correct alternative)
a. Revenue expenditure - Revenue receipts
b. Total expenditure - Total receipts
c. Revenue deficit - Interest payments
d. Fiscal deficit - Interest payments
Solution
Fiscal deficit - Interest payments
Primary deficit is the difference between the fiscal deficit and interest payment.
Primary deficit = Fiscal deficit − Interest payment
It determines the amount of borrowing which is necessary for the government to pay for the expenses other than interest payments
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RELATED QUESTIONS
Primary deficit equals : (Choose the correct alternative)
(a) Borrowings
(b) Interest payments
(c) Borrowings less interest payments
(d) Borrowings and interest payments both
What is primary deficit?
Primary deficit in a government budget equals : (Choose the correct alternative)
a. Interest payments
b. Interest payments less borrowings
c. Borrowings less interest payments
d. None of the above
From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit:
|
S. No. |
Items |
(Rs Arab) |
|
(i) |
Capital receipts net of borrowings |
95 |
|
(ii) |
Revenue expenditure |
100 |
|
(iii) |
Interest payments |
10 |
|
(iv) |
Revenue receipts |
80 |
|
(v) |
Capital expenditure |
110 |
Choose the correct answer from given options
Primary deficit in a government budget will be zero when ________
Primary deficit is borrowing requirements of the government for payment(s) ______.
