Lesson eLearning

The fiscal deficit of India in FY 2022‑23 is Rs. 6.5 lakh crore. Interest payments on previous borrowings amount to Rs. 2.2 lakh crore. Calculate the primary deficit for the same year.

medium 2 marks Class 12 · Economics · Government Budget and the Economy
Answer
Rs. 4.3 lakh crore

The correct answer is Rs. 4.3 lakh crore — Hence, the primary deficit equals Rs. 4.3 lakh crore.

Step-by-step solution

  1. Recall the definition: Primary Deficit = Fiscal Deficit – Interest Payments.
  2. Insert the given numbers: Primary Deficit = Rs. 6.5 lakh crore – Rs. 2.2 lakh crore.
  3. Subtract: Rs. 6.5 lakh crore – Rs. 2.2 lakh crore = Rs. 4.3 lakh crore.
  4. Hence, the primary deficit equals Rs. 4.3 lakh crore.
Common mistake: Adding interest payments to fiscal deficit instead of subtracting.

Concept tested: Primary deficit determination

Published · How this solution was prepared and checked

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