2023 · Q64
Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit?
General KnowledgeIndian Economy
- ADefence expenditure
- BExpenditure on subsidies
- CInterest payments
- DPension
Explanation
Primary Deficit = Fiscal Deficit minus Interest Payments. It measures the current year's borrowing requirement excluding the burden of servicing past debt, so interest payments are the expenditure subtracted from the fiscal deficit.