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Questions
What is a primary deficit?
Explain the meaning of primary deficit.
State the meaning of primary deficit.
Explain
Short Answer
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Solution
The primary deficit refers to the difference between the fiscal deficit and interest payments. Since fiscal deficit reflects the borrowing requirements of the government, it can be said that the primary deficit refers to the difference between the government’s borrowing requirements and its interest liabilities.
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Deficit Budget - Primary Deficit
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