Which of the following correctly defines 'Primary Deficit' in the context of India's Union Budget?

Primary Deficit = Fiscal Deficit minus Interest Payments. It measures how much the government borrows to fund current expenditure excluding interest on past borrowings. A zero Primary Deficit means the government borrows only to service past debt — not for new spending. Fiscal Deficit = Total Expenditure minus Total Receipts (excluding borrowings) — the total borrowing requirement. Revenue Deficit = Revenue Expenditure minus Revenue Receipts — reflects borrowing to fund day-to-day operational expenses. Understanding all three deficits is essential for analysing fiscal sustainability. Budget 2026-27 targeted a Fiscal Deficit of 4.3% of GDP.