Question

The value of Primary Deficit for the year 2020-21, would be ₹_____________ crores. a) 88134 b) 321581 c) 96133 d) 609219​

Answer 1

Explanation:

The value of Primary Deficit for the year 2020-21, would be ₹88134 crores .

Hence the correct option is (a) .

Answer 2

The value of the Primary Deficit of the year 2020-21, would be Rs (A) 88134.

• Primary Deficit Explained

1. Primary deficit refers to the difference between the current year's fiscal deficit and interest payment on previous borrowings.
2. It indicates the borrowing requirements of the government, excluding interest. It also shows how much of the government's expenses, other than interest payment, can be met through borrowings.
3. So, a low or zero primary deficit indicates that interest commitments (on earlier loans) have forced the government to borrow.