A country's fiscal deficit stands at USD 50,000 crores. It is receiving USD 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are USD 1,500 crores. What is the gross primary deficit?

Question

Aicharya · Accepted Answer

Primary deficit = Fiscal deficit - Interest payments = 50,000 - 1,500 = 48,500 crores. (Non-debt creating capital receipts are already netted out in calculating fiscal deficit.) [Note: the dollar token is a formatting placeholder for Indian Rupees.]

A country's fiscal deficit stands at USD 50,000 crores. It is receiving USD 10,000 crores through non-debt…

Solution