Explain "primary deficit' in a government budget. What does it indicate?
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Primary deficit in a government budget, is that part of fiscal deficit which indicates borrowing requirements to cover up the shortfall in receipts on account of expenditure other than the interest payments. This deficit indicates that how much is the government borrowing under compulsion of interest payments.
Primary Deficit = Fiscal Deficit - Interest Payments.
Primary Deficit = Fiscal Deficit - Interest Payments.
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