Gross primary deficit can be expressed as ________.

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 08 Dec 2022 Shift 1)

Answer 1

The correct answer is Gross fiscal deficit - Net interest liabilities

Key Points

Primary Deficit
- The difference between the fiscal deficit for the current fiscal year and the interest payment required for the prior fiscal year is referred to as the primary deficit.
- It is one of the three crucial metrics for calculating the federal deficit.
- It displays the government's borrowing needs but does not include interest of any kind. In addition to the interest payment.
- It draws attention to the total amount of government spending that must be covered by borrowing.

Additional Information

Primary deficit is the difference between total government borrowings and interest payments, or fiscal deficit, and total government borrowings only.
In most cases, when a loan is raised by the government, the interest payment amount is also included.
When the principal loan amount is removed from this sum, the primary deficit is shown.