The interest payment are estimated at Rs 10,000 which is 40% of primary deficit find fiscal deficit
Dear Student,
Let, Primary deficit = x
₹10,000 crores = 40% of x = 0.4x
x= ₹10,000 crores / 0.40 = ₹25,000 crores
Primary Deficit = Fiscal deficit – Interest payment
₹25,000 crores = Fiscal Deficit – ₹10,000 crores
Fiscal deficit = ₹25,000 crores + ₹10,000 crores
Fiscal Deficit = ₹35,000 crores
Regards
Let, Primary deficit = x
₹10,000 crores = 40% of x = 0.4x
x= ₹10,000 crores / 0.40 = ₹25,000 crores
Primary Deficit = Fiscal deficit – Interest payment
₹25,000 crores = Fiscal Deficit – ₹10,000 crores
Fiscal deficit = ₹25,000 crores + ₹10,000 crores
Fiscal Deficit = ₹35,000 crores
Regards