The Primary Deficit is zero in which of the following situations?

Correct option is B

The correct answer is: (b) Interest payment is equal to Fiscal Deficit
Explanation:
· Primary Deficit = Fiscal Deficit – Interest Payments
· Hence, if Fiscal Deficit = Interest Payments, then Primary Deficit = 0.
Information Booster:
· Used to assess current fiscal policy stance.
· Helps in understanding the debt sustainability.
· Fiscal Deficit includes both interest and principal payments.
· Low/zero Primary Deficit indicates better fiscal health.
· Data published by Ministry of Finance (Union Budget).
· Key term in Economic Survey and Budget Analysis.