{"id":86461,"date":"2025-06-01T03:48:16","date_gmt":"2025-06-01T03:48:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86461"},"modified":"2025-06-01T03:48:16","modified_gmt":"2025-06-01T03:48:16","slug":"which-one-of-the-following-expenditures-is-subtracted-from-fiscal-defi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-expenditures-is-subtracted-from-fiscal-defi\/","title":{"rendered":"Which one of the following expenditures is subtracted from Fiscal Defi"},"content":{"rendered":"

Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit ?<\/p>\n

[amp_mcq option1=”Defence expenditure” option2=”Expenditure on subsidies” option3=”Interest payments” option4=”Pension” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2023<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nInterest payments are subtracted from Fiscal Deficit to arrive at Primary Deficit.
\n<\/section>\n
\nFiscal Deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowings). It indicates the total borrowing requirement of the government.
\nPrimary Deficit is defined as Fiscal Deficit minus Interest Payments on previous borrowings.
\nPrimary Deficit = Fiscal Deficit – Interest Payments
\nThe 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.
\n<\/section>\n
\nA high primary deficit indicates the extent of fiscal profligacy in the current year, whereas a high fiscal deficit might be due to the interest burden on past debt even if the current year’s primary deficit is low or zero. Reducing interest payments is a key objective for fiscal consolidation, which can be achieved by reducing overall borrowing (and thus the fiscal deficit) over time.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit ? [amp_mcq option1=”Defence expenditure” option2=”Expenditure on subsidies” option3=”Interest payments” option4=”Pension” correct=”option3″] This question was previously asked in UPSC CDS-2 – 2023 Download PDFAttempt Online Interest payments are subtracted from Fiscal Deficit to arrive at Primary Deficit. Fiscal Deficit is … <\/p>\n

Detailed SolutionWhich one of the following expenditures is subtracted from Fiscal Defi<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1105,1120,1196],"class_list":["post-86461","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1105","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"\nWhich one of the following expenditures is subtracted from Fiscal Defi<\/title>\n<meta name=\"description\" content=\"Interest payments are subtracted from Fiscal Deficit to arrive at Primary Deficit. Fiscal Deficit is the difference between the government's total expenditure and its total receipts (excluding borrowings). It indicates the total borrowing requirement of the government. 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-expenditures-is-subtracted-from-fiscal-defi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following expenditures is subtracted from Fiscal Defi\" \/>\n<meta property=\"og:description\" content=\"Interest payments are subtracted from Fiscal Deficit to arrive at Primary Deficit. Fiscal Deficit is the difference between the government's total expenditure and its total receipts (excluding borrowings). It indicates the total borrowing requirement of the government. 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. 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