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When is primary deficit zero?

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When is primary deficit zero?

Posted by Rahul Kaangar 7 years, 1 month ago

CBSE > Class 12 > Economics

2 answers

Abhishek Thakur 7 years, 1 month ago

When fiscal deficit is equals to interest payment. It means government borrow only to make payments for its interest and not for any consumption purpose. It shows fiscal discipline.

Ritu Manon 7 years, 1 month ago

Primary deficit is fiscal deficit - interest payment. So if fiscal deficit of current year and interest payment on previous borrowings are equal then ur primary deficit will be 0

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