Question

what does zero primary deficit mean ?​

Answer 1

Explanation:

it means the government Resorts to borrowing only to clear the backlog of interest payments. there are no borrowing because of the excess of current year expenditure over the current year revenue. simply ,because current year expenditure happen to be equal to current year revenue. it is a sign of Fiscal discipline or fiscal responsibility on the part of government.

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Answer 2

primary deficit to the difference between fiscal deficit and interest payments . hence , a zero primary deficit means fiscal deficit is equal to interest payments .

primary deficit to the difference between fiscal deficit and interest payments . hence , a zero primary deficit means fiscal deficit is equal to interest payments . as we know fiscal deficit is equal to the borrowing payment , hence a zero primary deficit indicates that government is paying it's interest commitments by the way of borrowings , which is a not good sign as borrowings further increases future abilities .