1.

A government budget shows a primary deficit of Rs. 4,400 crore. The revenue expenditure on interest payment is Rs. 400 crore. How much is the fiscal deficit ?

Answer»

Primary deficit = Fiscal deficit – Interest payment
Rs. 4,400 crore = Fiscal deficit – Rs. 400 crore
Fiscal deficit = Primary deficit + interest payment
= 4,400 crore + Rs. 400 crore Fiscal deficit
= Rs. 4,800 crore.



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