Economics • Indian EconomyMedium
In the context of the Indian economy, what does the 'Primary Deficit' precisely measure?
A. Fiscal deficit minus interest payments on previous borrowings.✓ Correct Answer
B. Total government expenditure minus total non-debt tax revenues.
C. Revenue deficit plus capital expenditure of the central government.
D. Gross fiscal deficit minus net lending by the central government.
💡 Solution & Explanation
The primary deficit is calculated by subtracting interest payments on past borrowings from the gross fiscal deficit. It reflects the current fiscal imbalances of the government without accounting for the servicing of historical debt liabilities. Options focusing on total revenues or capital expenditures describe different fiscal aggregates like revenue deficits or budget deficits. Monitoring fiscal parameters is essential for understanding macroeconomic stability in the Indian economy.
More Economics Indian Economy questions
- Which of the following organizations releases the comprehensive 'All India Debt and Investment Survey…
- What is the primary mandate of the 'Competition Commission of India (CCI)', established under the Competition…
- Which Five-Year Plan of India laid special emphasis on 'Growth with Social Justice' and aimed at achieving…
- In July 1969, the Government of India nationalised 14 major private commercial banks. What was the minimum…
- What is the primary focus of the 'Mission Karmayogi' initiative launched by the Government of India?