The correct answer is (c) Primary deficit.
The primary deficit is the difference between the total expenditure and total revenue of the government, excluding interest payments. It is a measure of the government’s ability to finance its activities without borrowing.
The revenue deficit is the difference between the total revenue and total expenditure of the government, including interest payments. It is a measure of the government’s ability to meet its current obligations.
The fiscal deficit is the difference between the total expenditure and total revenue of the government, including both interest and non-interest payments. It is a measure of the government’s overall financial position.
The effective revenue deficit is the revenue deficit adjusted for the impact of changes in the tax structure. It is a measure of the government’s ability to raise revenue from taxes.
The primary deficit is a more accurate measure of the government’s financial position than the revenue deficit or the fiscal deficit, because it excludes interest payments. Interest payments are a non-discretionary expense, and they do not reflect the government’s ability to manage its finances. The primary deficit is a better measure of the government’s ability to finance its activities without borrowing.