Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

When can we say that the primary deficit in the government budget can be zero?

Options:

When fiscal deficit is in negative

When fiscal deficit is equal to the interest payments

When revenue deficit is zero

None of the above

Correct Answer:

When fiscal deficit is equal to the interest payments

Explanation:

Primary deficit = Fiscal deficit - Interest payments

When fiscal deficit is equal to interest payments automatically, primary deficit turns out to be 0.