If primary deficit is zero, then the amount of borrowing will be :

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(c) Just equal to the interest payment — Primary Deficit is simply the fiscal deficit minus the interest payments. Gross primary deficit = Gross fiscal deficit – Net interest liabilities Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.

Answer

(A) More than interest payment

Answer

(B) Lees than interest payment

Answer

(D) None of these

If primary deficit is zero, then the amount of borrowing will be :

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