Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit ?
Defence expenditure
Expenditure on subsidies
Interest payments
Pension
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CDS-2 – 2023
Primary Deficit is defined as Fiscal Deficit minus Interest Payments on previous borrowings.
Primary Deficit = Fiscal Deficit – Interest Payments
The primary deficit shows the borrowing requirement of the government excluding the interest burden on accumulated past debt. It reflects the current fiscal stance of the government.