A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500 crores. What is the gross primary deficit?
- A₹ 48,500 croresCorrect
- B₹ 51,500 crores
- C₹ 58,500 crores
- DNone of the above
Explanation
To calculate gross primary deficit, we use the formula:
Gross Primary Deficit = Fiscal Deficit - Interest Payments
Given information:
- Fiscal deficit = ₹50,000 crores
- Interest liabilities = ₹1,500 crores
- Non-debt creating capital receipts = ₹10,000 crores (this doesn't affect primary deficit calculation)
Calculation: Gross Primary Deficit = ₹50,000 - ₹1,500 = ₹48,500 crores
The non-debt creating capital receipts are already accounted for in the fiscal deficit figure, so they don't need separate adjustment in this calculation.
Related questions
More UPSC Prelims practice from the same subject and topic.
- Prelims 2025GS1economy
Consider the following statements : Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax. Statement II: In In…
- Prelims 2025GS1economy
Consider the following statements : I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest re…
- Prelims 2025GS1economy
Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments o…
- Prelims 2025GS1economy
With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds?
- Prelims 2025GS1economy
Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending …
- Prelims 2025GS1economy
Consider the following statements : I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a compan…