Civil Services Examination · Question 75
A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500 crores. What is the gross primary deficit?
Show answer & explanation
Answer: (A) ₹48,500 crores
Explanation
Gross primary deficit = Fiscal deficit − Interest payments = 50,000 − 1,500 = ₹48,500 crores.