What is Primary deficit? What does zero primary deficit shows?

1.	What is Primary deficit? What does zero primary deficit shows?
Answer» Primary deficit is the difference between fiscal deficit and interest payment. =[Primary Deficit or Gross Primary Deficit]=[fiscal deficit]-[interest payment] Primary deficit indicates how much government borrowing is going to meet expenses other than interest payment. It reflects the extent to which future burden is increasing. Zero Primary Deficit : - Indicator of Fiscal Discipline: - The Zero primary deficit signifies that the government has to resort to borrowing only to fulfill its earlier commitments of interest payments. In other words, the government is not adding to the existing loans for the purpose other than meeting its existing obligation of interest payment. It is a sign of fiscal discipline or fiscal responsibility on the part of the government High Primary deficit, on the other hand, reflects fiscal irresponsible of the government.

Answer»

Primary deficit is the difference between fiscal deficit and interest payment.

=[Primary Deficit or Gross Primary Deficit]=[fiscal deficit]-[interest payment]

Primary deficit indicates how much government borrowing is going to meet expenses other than interest payment. It reflects the extent to which future burden is increasing. Zero Primary Deficit : - Indicator of Fiscal Discipline: - The Zero primary deficit signifies that the government has to resort to borrowing only to fulfill its earlier commitments of interest payments. In other words, the government is not adding to the existing loans for the purpose other than meeting its existing obligation of interest payment. It is a sign of fiscal discipline or fiscal responsibility on the part of the government High Primary deficit, on the other hand, reflects fiscal irresponsible of the government.

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