Home › CBSE Class 12 (Arts) › Economics › Government Budget and the Economy › The aim of measuring the primary deficit is to f…
The aim of measuring the primary deficit is to focus on
AAccumulated past debt
BTax evasion levels
CPresent fiscal imbalances
DExchange rate gaps
Answer & Solution
Correct answer: C. Present fiscal imbalances
Removing interest on earlier borrowing leaves the borrowing caused by the current year's spending exceeding revenue.
Related questions
Since 1997-98, which deficit measure has no longer been shown in India's budget?A high fiscal deficit need not be inflationary whenA common criticism of deficits is that they areWithout any change in fiscal policy, the budget deficit tends toDebt owed to foreigners is a real burden becauseGovernment bonds competing with corporate bonds for savings can push out private borrowersUnder Ricardian equivalence, higher government dissaving from a deficit leads toWho first argued that people save more when faced with high deficits, giving Ricardian equ