Q75.
A country's fiscal deficit stands at Rs.50,000 crores. It is receiving Rs.10,000 crores through non-debt creating capital receipts. The country's interest liabilities are Rs.1,500 crores. What is the gross primary deficit?
Answer
A
Explanation
Deficit = Total Expenditure – (Revenue Receipts + Capital Receipts) Primary Deficit = Fiscal Deficit – Interest Payments Gross Primary Deficit = Rs 50,000 crores - Rs 1,500 = Rs 48,500 crores