Andhra Pradesh Integrated Common Entrance Test
Question : If the value of gross fiscal deficit is more than net interest liabilities, the value of gross primary deficit will be _____.
Option 1: positive
Option 2: zero
Option 3: infinity
Option 4: negative
Correct Answer: positive
Solution : The correct answer is positive.
If the value of the gross fiscal deficit is greater than the net interest liabilities, the value of the gross primary deficit will be positive, which means the gross primary deficit is the gross fiscal deficit minus the net interest liabilities. A deficit is the amount left when the spending done in a budget exceeds the earnings.
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