Primary Deficit = Fiscal Deficit - Interest Payments. It measures the government's borrowing needs for its current spending activities, excluding the cost of servicing past debt.
Which of the following is true about 'Primary Deficit' of budget?
Asked in ARO GS 252022 74 2024 · Topic: Fiscal Policy & Revenue (Fiscal Deficits: Concepts, measures, and financing of deficits)
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Answer: B. The primary deficit reflects the amount needed for borrowing by the Government to meet the current year's expenses
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