Question

Primary Deficit is obtained by:

Options

• \[\text{Fiscal Deficit} - \text{Interest Payments}\]

• \[\text{Total Expenditure} - \text{Revenue Receipts}\]

• \[\text{Revenue Deficit} - \text{Interest Payments}\]

• \[\text{Fiscal Deficit} + \text{Interest Payments}\]

Answer 1

The formula is \[\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments}\]. It isolates that part of the fiscal deficit which remains after excluding the burden of interest payments.