Multiple Choice Questions on Primary deficit in a government budget will be zero when ........ for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

Primary deficit in a government budget will be zero when ........

Economics (CUET) Government Budget and Economy
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    Primary deficit in a government budget will be zero, when

     

    Revenue deficit is zero
     

    Incorrect Answer

    Net interest payments are zero
     

    Incorrect Answer

    Fiscal deficit is zero
     

    Incorrect Answer

    Fiscal deficit is equal to interest payment
     

    Correct Answer
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    Explanation:

    Option (4) is correct. 
    Explanation: Primary deficit indicates borrowing requirements of the government to meet fiscal deficit net of interest payments.
     

    By: Parvesh Mehta
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