Question : In a government budget, primary deficit is Rs. 2000 crore and interest payments is Rs. 900 crore. How much is the fiscal deficit?
Option 1: 2000
Option 2: 2020
Option 3: 1100
Option 4: 1840
Correct Answer:
1100
Solution :
Primary deficit= Fiscal deficit- interest payments
2000= Fiscal deficit-900
Fiscal deficit- Rs. 1100 crore
Hence, Option C is correct.