Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit?
Interest payments
The correct answer is Interest payments.
The Primary Deficit measures the government's fresh borrowing requirement excluding the cost of servicing past debt. It is defined as:
\(\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments}\)
A zero primary deficit means the government is borrowing only to pay interest on existing debt, and no new expenditure obligations are being financed by borrowing. Defence expenditure, subsidies and pensions are all part of regular revenue/capital expenditure and are not subtracted while computing the primary deficit.
Similar Questions
Which one of the following is not a function of money?
The excess of total expenditure of Government over its total receipts, excluding borrowings, is known as
The mismatch in the regional or occupational pattern of job vacancies and the pattern of worker availability results in
The asset or assets that a borrower pledges in order to guarantee repayment of a loan is called as
The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as
Which one of the following is considered as an agency function of commercial banks in India?
Which one of the following statements about Non-Banking Financial Companies (NBFCs) is not correct?
Which one of the following isnotcorrect about Repo rate?
The Cash Reserve Ratio refers to
Which of the following is/are example(s) of ‘Near Money’?
1. Treasury Bill
2. Credit Card
3. Savings accounts and small time deposits
4. Retail money market mutual funds
Select the correct answer using the code given below:
Important Questions from Money and Banking
Which one of the following is likely to be the most inflationary in its effects?
Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
Consider the following statements :
The effect of devaluation of a currency is that it necessarily
1. improves the competitiveness of the domestic exports in the foreign markets
2. increase the foreign value of domestic currency
3. improves the trade balance
Which of the above statements is/are correct?
Indian Government Bond Yields are influenced by which of the following?
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates
Select the correct answer using the code given below.
With reference to “Urban Cooperative Banks" in India, consider the following statements :
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966
Which of the statements given above is/are correct?
