UPSC Previous Year Question | Prelims GS | 2025

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 its gross primary deficit?

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

Answer

Correct Answer

₹48,500 crores

Explanation

Gross primary deficit = Fiscal deficit − Interest payments = 50,000 − 1,500 = ₹48,500 crores. (The non-debt creating capital receipts figure is extraneous information for this particular calculation of gross primary deficit from fiscal deficit.)

Topics: economy, fiscal deficit, primary deficit