Question
What needs to be subtracted from gross fiscal deficit to get gross primary deficit ?
(
This question was previously asked in
Shift 28/05/2023 3:30 PM - 6:30 PM
A
Revenue Expenditure
B
Net Interest Liabilities
C
Recovery of Loans
D
Non-tax Revenue
Correct Answer
Net Interest Liabilities
Detailed Explanation
To calculate the Gross Primary Deficit, you need to subtract Net Interest Liabilities from the Gross Fiscal Deficit. Therefore, the correct answer is (2) "Net Interest Liabilities."
The Gross Primary Deficit is a measure of the fiscal deficit that excludes interest payments. It provides insight into the government's ability to meet its revenue expenditure and maintain fiscal discipline without the burden of interest payments.
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