1.

The interest payments as per the government budget duringa year are ₹ 1, 40 , 000 crores . If total borrowing requirements of the government are estimated at ₹2, 70 , 000 crores , then how much is primary deficit.

Answer»

SOLUTION :Total borrowing requirements of the government are ESTIMATED at ₹ 2 , 70 ,000 crores . It means , Fiscal Deficit = ₹2 , 70 , 000 crores.
PRIMARY Deficit = Fiscal Deficit - Interest Payment
Primary Deficit = ₹2, 70 , 000 crores - ₹1 , 40 , 000 crores = ₹ 1 , 30 , 000 crores.


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