Question

Given the following data for a country: Fiscal deficit: $50 billion Interest payments: $15 billion Capital expenditure: $25 billion What is the primary fiscal deficit?

Q: Answer-Given the following data for a country: Fiscal deficit: $50 billion Interest payments: $15 billion...

Primary fiscal deficit or more commanly referred as primary deficit is calculated as Primary Fiscal DeficitFiscal DeficitInterest Payments Plugging in the values Primary Fiscal Deficit501535. Note F iscal deficit indicates the governments total borrowing requirements, including interest while Primary Deficit indicates the governments total borrowing requirements, except interest.