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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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