Multiple Choice Questions on In Budgetary parlance Primary deficit is........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

In Budgetary parlance Primary deficit is........

Economic Affairs Public Finance and Debt Management
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    In Budgetary parlance Primary deficit is

    Fiscal deficit minus interest payments.

    Correct Answer

    Fiscal deficit plus interest payments.

    Incorrect Answer

    Fiscal deficit plus non-debt creating revenues.

    Incorrect Answer

    Fiscal deficit minus non-debt creating revenues.

    Incorrect Answer
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    Explanation:
    In Budgetary parlance Primary deficit is fiscal deficit minus interest payments.
    The primary deficit is defined as the difference between current government spending on goods and services and total current revenue from all types of taxes net of transfer payments.

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