Multiple choice

In budgetary terminology primary deficit is

  1. Fiscal Deficit minus Interest Payments

  2. Net Deficit minus Revenue Deficit

  3. Fiscal Deficit minus Revenue Payments

  4. Budget Deficit minus Interest Payments
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Primary deficit represents the fiscal deficit minus interest payments on past debt. It shows the government's current year fiscal shortfall excluding debt servicing obligations. Options A and D both mention 'minus Interest Payments', but only A correctly uses Fiscal Deficit as the base (Budget Deficit is an outdated concept).

Keep practicing — related questions