If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit? A. Rs. 50,000 crores B. Rs. 25,000 crores C. Rs. 1,00,000 crores D. Rs. 1,25,000 crores

The correct answer is A. Rs. 50,000 crores.

The fiscal deficit is the difference between the government’s total expenditure and its total revenue. The primary deficit is the fiscal deficit minus interest payments.

In this case, the fiscal deficit is Rs. 75,000 crores, relending to State is Rs. 25,000 crores, and interest payments are Rs. 25,000 crores. Therefore, the primary deficit is Rs. 75,000 crores – Rs. 25,000 crores – Rs. 25,000 crores = Rs. 50,000 crores.

Option B is incorrect because it is the amount of relending to State. Option C is incorrect because it is the total fiscal deficit. Option D is incorrect because it is the sum of the fiscal deficit and interest payments.