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?

1. ₹48,500 crores
2. ₹51,500 crores
3. ₹58,500 crores
4. None of the above

Explanation

Option (a) is correct

• Use the formula: Gross primary deficit = Fiscal deficit – Interest liabilities.
  • Substitute the given values:
  • Gross primary deficit = ₹50,000-₹1,500
  • Gross primary deficit = ₹ 48,500 crores.

Answer: (a) ₹ 48,500 crores; Difficulty Level: Easy