How do we get the primary deficit from the fiscal deficit ........

Introductory Macro Economics Government Budget and Economy

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How do we get the primary deficit from the fiscal deficit?

By adding interest

By subtracting interest

By adding net exports

By subtracting net exports

Explanation:

Option (2) is correct.
Explanation: Primary deficit refers to the
difference between fiscal deficit of the current
year and interest payments on the previous
borrowings. By deducting interest payment
from fiscal deficit, we get primary deficit.
Fiscal Deficit
Primary Deficit - Interest Payments.

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