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Primary Deficit . #PrimaryDeficit

  • Primary Deficit is measured by subtracting the interest payments from fiscal deficit.
  • It is a measure of current year’s fiscal operation after excluding the liability of interestpayment created due to borrowings under taken in the past.
  • Primary Deficit = Fiscal Deficit — Interest payment
  • It is a very handy tool in the process of bringing in more transparency in the government’s expenditure pattern.

 

 

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