The correct answer is (a) below 2.0 percent of the GDP.
The primary deficit is the difference between the government’s total revenue and its total expenditure, excluding interest payments. A primary deficit indicates that the government is spending more money than it is taking in, and must borrow money to finance the difference.
The Union Budget for 2010-11 estimated the primary deficit at 1.9 percent of GDP. This was a significant improvement from the previous year, when the primary deficit was 3.6 percent of GDP. The improvement was due to a number of factors, including higher tax revenues and lower expenditure.
The primary deficit is an important indicator of the government’s fiscal health. A high primary deficit can lead to a build-up of debt, which can make it difficult for the government to finance its operations in the future. A low primary deficit, on the other hand, indicates that the government is managing its finances well and is less likely to face financial problems in the future.
The options (b) and (d) are incorrect because the primary deficit was estimated to be below 2.0 percent of GDP. Option (c) is incorrect because the primary deficit was estimated to be below 2.0 percent of GDP, not above 2.0 percent of GDP.