Economists feel that Government should try to follow surplus or deficit budget to overcome
inflation and deflation in the economy. The primary deficit will be zero when government borrow
money to pay interest only. Further, government should try to raise funds through non-taxable
receipts.
4) Policy of surplus budget at the time of inflation is a part of ????.. objective of government
budget.
5) Primary deficit in a government budget will be zero when:
a) Revenue deficit is zero c) fiscal deficit is zero
b) Fiscal deficit is equal to interest payments d) net interest payments are zero