Multiple choice

In budgetary terminology primary deficit is

  1. Net Deficit minus Revenue Deficit

  2. Fiscal Deficit minus Interest Payments

  3. Fiscal Deficit minus Revenue Payments

  4. Budget Deficit minus Interest Payments

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Primary deficit is the fiscal deficit minus interest payments on past debt. It represents the borrowing requirement of the government exclusive of interest obligation, and reflects the current year's fiscal stance. This helps distinguish between legacy debt costs and current fiscal policy.

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