Primary deficit equals fiscal deficit minus:
ACapital receipts
BTotal subsidies
CInterest payments
DRevenue receipts
Answer & Solution
Correct answer: C. Interest payments
1. It focuses on present fiscal imbalance.
2. Primary deficit removes interest payments.
3. Net interest is payments minus receipts.
_Source: syllabus Introductory Macroeconomics, Chapter 5, Government Budget and the Economy._
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