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Gross primary deficit is equal to___________
Question

Gross primary deficit is equal to___________

A.

difference between gross fiscal deficit and interest payments

B.

difference between total expenditure and total receipts

C.

difference between net borrowings and net capital receipts

D.

difference between revenue deficit and capital expenditure
 

Correct option is A

The correct answer is (a) difference between gross fiscal deficit and interest payments
Gross primary deficit is calculated by subtracting the interest payments from the gross fiscal deficit. This measure is used to show how much of the government's deficit is due to factors other than interest payments, thereby providing an insight into the deficit that arises from the current fiscal activities excluding the cost of servicing past debt.
 

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