A country’s fiscal deficit stands at 50,000 crores. It is receiving 10,000 crores through non-debt-creating capital receipts. The country’s interest liabilities are 1,500 crores. What is the gross primary deficit?  

  • 48,500 crores   
  • 51,500 crores    
  • 58,500 crores    
  • None of the above   

Answer: (a) 48,500 crores 

  • To find the Gross Primary Deficit, we need to use the following formula:
  • Gross Primary Deficit = Fiscal Deficit−Interest Payments
  • Given:
    • Fiscal Deficit = ₹50,000 crores
    • Interest Liabilities = ₹1,500 crores
  • Non-debt-creating capital receipts are not needed to calculate the Primary Deficit directly. They are part of the financing of the fiscal deficit, but do not affect the primary deficit calculation.
  • Gross Primary Deficit = 50,000 − 1,500 = 48,500 crores