Which of the following is a correctly matched pair? 1. Primary deficit A. Fiscal deficit-interest payments 2. Revenue defecit B. Borrowings 3. Fiscal deficit C. Primary deficit + taxable items 4. Tax deficit D. Borrowings in the government budget

1-A 2-B 3-C 4-D

1-A

Primary deficit refers to the difference between the current year's fiscal deficit and interest payment on previous borrowings. It indicates the borrowing requirements of the government, excluding interest. Primary deficit = Fiscal deficit - interest payments