Consider the data about a government budget and answer the following:

What is primary deficit?

₹10,000 crore

Primary deficit = Fiscal deficit – Interest payments

Primary deficit = ₹ 15,000 crores – ₹5,000 crores

Primary deficit = ₹ 10,000 crores

Note:-

• Fiscal deficit is same as borrowings i.e. ₹15000
• Interest payments are 25% of revenue deficit i.e. ₹ 70,000 - ₹ 50,000 = 20,000