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Which of following statement is true about the Primary deficit?
- a)It is difference between Revenue receipts and Revenue Expenditure
- b)It is difference between capital receipts and Interest Payment
- c)It is difference between the Fiscal Deficit and Interest Payment
- d)It is addition of Fiscal Deficit and Interest Payment
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Which of following statement is true about the Primary deficit?a) It i...
Primary Deficit
The primary deficit is the difference between the government's total expenditure excluding interest payments and its total revenue. In other words, it is the government's expenditure on everything except for interest payments.
Formula
Primary Deficit = Fiscal Deficit - Interest Payments
Explanation of Options
a) The difference between revenue receipts and revenue expenditure is known as the revenue deficit, not the primary deficit.
b) The difference between capital receipts and interest payment is not related to the primary deficit.
c) This statement is correct. The primary deficit is the difference between the fiscal deficit and interest payments.
d) This statement is incorrect. The primary deficit is not the addition of fiscal deficit and interest payments.
Conclusion
In conclusion, the correct option is (c) - the primary deficit is the difference between the fiscal deficit and interest payments.
The primary deficit is the difference between the government's total expenditure excluding interest payments and its total revenue. In other words, it is the government's expenditure on everything except for interest payments.
Formula
Primary Deficit = Fiscal Deficit - Interest Payments
Explanation of Options
a) The difference between revenue receipts and revenue expenditure is known as the revenue deficit, not the primary deficit.
b) The difference between capital receipts and interest payment is not related to the primary deficit.
c) This statement is correct. The primary deficit is the difference between the fiscal deficit and interest payments.
d) This statement is incorrect. The primary deficit is not the addition of fiscal deficit and interest payments.
Conclusion
In conclusion, the correct option is (c) - the primary deficit is the difference between the fiscal deficit and interest payments.
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Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer?
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Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer?.
Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer?.
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Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of following statement is true about the Primary deficit?a) It is difference between Revenue receipts and Revenue Expenditureb) It is difference between capital receipts and Interest Payment c) It is difference between the Fiscal Deficit and Interest Paymentd) It is addition of Fiscal Deficit and Interest PaymentCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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