What do you mean by primary deficit ? – InterviewSolution

1.	What do you mean by primary deficit ?
Answer» Primary deficit is the difference between fiscal deficit and interest payment. It is estimated as under : Primary deficit = Fiscal deficit – Interest Payment PD = FD – IP (Here, PD = Primary deficit, FD = Fiscal deficit, IP = Interest payment) In, other words, primary deficit indicates government borrowings on account of current year expenditure and current year receipts of the government.

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