Question : The interest payments as per the government budget during a year was Rs. 130000 crore If total borrowings of the government are estimated as Rs. 300000 crore, then how much is primary deficit.
Option 1: 270000
Option 2: 130000
Option 3: 160000
Option 4: 170000
Correct Answer:
170000
Solution :
Primary deficit= Fiscal deficit - interest payments
Primary deficit= 300000-130000
Primary deficit= Rs. 170000 crore.
Hence, Option D is correct.