Question

The difference between fiscal deficit and interest payment is called
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Answer 1

Explanation:

• Primary Deficit is Fiscal Deficit net of Interest Payment. It is the difference between Fiscal Deficit and Interest payment. Revenue deficit is the excess of revenue expenditure over revenue receipts. It indicates the Borrowing requirements of the government for the purpose other than interest payment

• While fiscal deficit is the difference between total revenue and expenditure, primary deficit can be arrived by deducting interest payment from fiscal deficit. Interest payment is the payment that a government makes on its borrowings to the creditors.