If the value of gross fiscal deficit will be more than net interest liabilities, the value of gross primary deficit will be ______.

Question

Question

This question was previously asked in

SSC MTS (2022) Official Paper (Held On: 20 Jun, 2023 Shift 3)

Answer 1

The correct answer is Positive.

Key Points

Gross fiscal deficit:-
- It is the excess of total expenditure, including loans net of recovery over net of revenue and non-debt capital receipts.
- It is an indicator of the total borrowings needed by the government.
- GFD is calculated as follows: GFD = Total expenditure - (Revenue receipts + Non-debt capital receipts)
- If the value of gross fiscal deficit will be more than net interest liabilities, the value of gross primary deficit will be positive. (Hence option 3 is correct).

Additional Information

Gross primary deficit:-
- It is the difference between the government's gross fiscal deficit and its net interest liabilities.
Net interest liabilities:-
- It is the difference between the government's interest payments and its interest receipts.