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Q:

Gross primary deficit is the difference between ______.

  • 1
    Revenue deficit and interest receipts
  • 2
    Gross fiscal deficit and interest receipts
  • 3
    Revenue deficit and interest payments
  • 4
    Gross fiscal deficit and net interest liabilities
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Answer : 1. "Revenue deficit and interest receipts"
Explanation :

Gross primary deficit refers to the difference between the current year's fiscal deficit and interest payments made on the previous year's borrowings. In other words, it represents the fiscal deficit of the government excluding interest payments.

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