Accountancy, asked by sanam654, 1 year ago

what is primary deficit?

Answers

Answered by deepshika1512
1
Primary deficit is one of the parts of fiscal deficit. While fiscal deficit is the difference between total revenue and expenditure, primary deficit can be arrived by deducting interest payment from fiscaldeficit. Interest payment is the payment that a government makes on its borrowings to the creditors.
Answered by khushboo41
4
heya user!

Primary deficit is one of the parts of fiscal deficit. it can be arrived by deducting interest payment from fiscal deficit .while fiscal deficit is when a govt total expenditure exceeds the total revenue that it generates (excluding money from borrowing) deficits differs from debt, which is an accumulation of yearly deficit.

in terms of formula we can written as -> primary deficit = fiscal deficit -interest payment.

hope this help! ^_^
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