Macro

Government Budget

Easy

What needs to be subtracted from gross fiscal deficit to get gross primary deficit ?

Revenue Expenditure

Net Interest Liabilities

Recovery of Loans

Non-tax Revenue

✅ Correct Option: 2

Primary Deficit measures borrowing needs excluding interest payments on past debt. By definition, Gross Primary Deficit = Gross Fiscal Deficit - Net Interest Liabilities (interest payments). This isolates the current year's fiscal imbalance from the burden of past borrowings.

2025: 22 May Shift 2

Identify the tax imposed by the government that do not depend on income.

2023: 20 June Shift 1

Match List I with List II

LIST I	LIST II
A. Revenue Receipt	I. Increase in Liability
B. Capital Receipt	II. Do not increase in Asset
C. Revenue Expenditure	III. Increase in Asset
D. Capital Expenditure	IV. Do not increase Liability

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

Which of the following statements is true ?

(A) Fiscal deficit is the difference between the government's budgetary expenditure and budgetary receipts excluding borrowings.

(B) Primary deficit is the difference between total receipts and interest payments.

(D) Primary deficit equals revenue deficit less interest payments.

(E) Revenue deficit refers to excess of government's revenue expenditure over its revenue receipts.

Choose the correct answer from the options given below :

2026: 31 May Shift 1

Which of the following component is not part of non-planned expenditure?

2025: 15 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Interest received from abroad	(I) revenue expenditure
(B) Partial repayment of loan	(II) capital expenditure
(C) Selling of equity of PSUs by the government	(III) revenue receipt
(D) Salaries given to government employees	(IV) capital receipt

Choose the correct answer from the options given below:

2026: 6 June Shift 1

The change in equilibrium output that results from a unit increase or decrease in both taxes and government spending is called.

What needs to be subtracted from gross fiscal deficit to get gross primary deficit ?

Solution

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