UPSC Prelims 2025·GS1·economy·public finance

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?

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Last updated 23 May 2026, 3:31 pm IST
  1. A₹ 48,500 croresCorrect
  2. B₹ 51,500 crores
  3. C₹ 58,500 crores
  4. 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.
economy: A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital re

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