35
Question 35
Set 3
Contents
QQuestion
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?
OOptions
A
A) 48,500 crores
B
B) 51,500 crores
C
C) 58,500 crores
D
D) None of the above
✓Correct Answer
A) ₹48,500 crores
DDalvoy Solutions
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.
SUPSC Prelims Strategy and Tips
For fiscal deficit calculations, remember that primary deficit simply removes interest payments from fiscal deficit. Non-debt capital receipts affect fiscal deficit calculation but not the primary deficit derivation.
SUPSC Prelims 2025 Syllabus Analysis
Economics - Government budget and fiscal mathematics
AUPSC Prelims 2025 Question Analysis
Medium difficulty - requires understanding of budget deficit relationships and calculation methods