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Question
The primary deficit in a government budget is:
Options
Revenue expenditure − Revenue receipts
Total expenditure − Total receipts
Revenue deficit − Interest payments
Fiscal deficit − Interest payments.
MCQ
Solution
Fiscal deficit − Interest payments.
Explanation:
The gap between the current fiscal deficit and interest payments on earlier borrowings is referred to as the primary deficit. It represents the government's borrowing needs, excluding interest.
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Objectives of Government Budget
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