Question : The interest payments as per the government budget during a year was Rs. 1100 crore If total borrowings of the government are estimated as Rs. 2800 crore, then how much is primary deficit.
Option 1: 2500
Option 2: 1100
Option 3: 1400
Option 4: 1700
Correct Answer: 1700
Solution :
Primary deficit= Fiscal deficit - interest payments
Primary deficit= 2800-1100
Primary deficit= Rs. 1700 crore.
Hence, Option D is correct.