Question : In a government budget, the primary deficit is Rs.500 crore and interest payments are Rs.130 crore. How much is the fiscal deficit?
Option 1: 100
Option 2: 500
Option 3: 130
Option 4: 630
Answer (1)
Correct Answer:
630
Solution :
The primary deficit is the difference between fiscal deficit and interest payments.
Therefore, fiscal deficit = primary deficit + interest payments. =500 + 130= 630 crores
Hence option D is the correct answer
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