Question

The interest payments as per the government budget during a year are ₹ 1, 40 , 000 crores . If total borrowing requirements of the government are estimated at ₹ 2, 70 , 000 crores , then how much is primary deficit.

Answer 1

Total borrowing requirements of the government are estimated at ₹ 2 , 70 ,000 crores . It means , Fiscal Deficit = ₹ 2 , 70 , 000 crores.
Primary Deficit = Fiscal Deficit - Interest Payment
Primary Deficit = ₹ 2, 70 , 000 crores - ₹ 1 , 40 , 000 crores = ₹ 1 , 30 , 000 crores.