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______ deficit includes interest payment by the Government on the past loans. - Economics

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Question

______ deficit includes interest payment by the Government on the past loans.

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Solution

Fiscal deficit includes interest payments by the Government on past loans.

Explanation:

Fiscal deficit includes the total borrowings of the government, and it also covers interest payments on past loans, along with current expenditure.

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2019-2020 (March) Delhi Set 1
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