UPSC CSE Prelims
Question 83
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?
View correct answer and explanation
Correct answer: A
Correct Option: A (₹48,500 crores)
Explanation: Primary deficit equals fiscal deficit minus interest payments. Therefore ₹50,000 crore − ₹1,500 crore = ₹48,500 crore; non-debt capital receipts are already reflected when calculating the given fiscal deficit.
Option-wise Analysis:
A: Correct-₹48,500 crore.
B: Incorrect-adds interest instead of subtracting it.
C: Incorrect-unnecessarily adds ₹10,000 crore of non-debt receipts.
D: Incorrect-option A matches the calculation.