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Primary deficit is the gross deficit which is obtained by subtracting interest payments from budget deficit of any country of a particular year. We need to know the value of primary deficit, while calculating the fiscal deficit.
Alternative Definition of Primary Deficit
Primary deficit corresponds to the net borrowing, which is required to meet the expenditure excluding the interest payment.
Primary Deficit = (Fiscal Deficit - Interest Payment)
Statistical reports: Primary deficit ( in India)
In the fiscal year 1999-2000: primary deficit was (-) Rs.2598.72 crore
In the fiscal year 2000-2001: primary deficit was (-) Rs.1038.38 crore
In the fiscal year 2001-2002: primary deficit was (-) Rs.2598.72 crore
Over the last few year the fiscal status of India has improved. In the fiscal year 2006-07, the revenue deficit in India was 2%, primary deficit was 0.1% and fiscal deficit was 3.7 percent. The government of India budget for 2007-08 predicts a revenue deficit of 1.5%, primary deficit of -0.2% and fiscal deficit of 3.3 percent.
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How many types of deficit in Indian budget?
Currently in 2010-2011 1. Revenue Deficit 2. Fiscal Deficit 3.Primary Deficit. There used to be these 2 more type which have been now abolished 4. Budget Deficit 5. Monetised Deficit ~wt.what@gmail.com
What problem is most directly associated with a trade deficit?
More cash is leaving the country than is coming into the country is the primary problem with trade deficit. The trade deficit can have an impact on employment and incomes.
What is government's intertemporal budget constraint?
Government is similar to private sector ♦ Collects taxes (net of transfers): T ♦ Buys goods and services: G ♦ Repays debt service: debt accumulated + interests paid rG. Or is paid by its debtors. ♦ Gov deficit can be split in two: ◊ The primary deficit is G1 - T1 ◊ Interest payments rG(D1) on inherited debt from the past. ♦ IBC is obeyed if: in period 2 the primary deficit is enough to repay the primary def in period 1 + the interests on that deficit + the interest and principal on old debt (D1) ? ♦ T2-G2 = (1+rG)(G1-T1) + D1 + rGD1
How do you calculate nominal deficit?
nominal deficit is the deficit determined by looking at the difference between expenditures and receipts.real deficit: nominal deficit - (inflation x total debt)
What is the difference among fiscal deficit budget deficit revenue deficit and trade deficit?
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
What is primary deficit in a budget?
Primary deficit=Fiscal deficit-[minus] Interest payments
How many types of deficit in Indian budget?
Currently in 2010-2011 1. Revenue Deficit 2. Fiscal Deficit 3.Primary Deficit. There used to be these 2 more type which have been now abolished 4. Budget Deficit 5. Monetised Deficit ~wt.what@gmail.com
What is meant by the term Attention Deficit?
Attention Deficit means that one has trouble focusing on tasks. In other words, they cannot pay attention. This is the primary symptom of Attention Deficit Disorder.
What problem is most directly associated with a trade deficit?
More cash is leaving the country than is coming into the country is the primary problem with trade deficit. The trade deficit can have an impact on employment and incomes.
What is government's intertemporal budget constraint?
Government is similar to private sector ♦ Collects taxes (net of transfers): T ♦ Buys goods and services: G ♦ Repays debt service: debt accumulated + interests paid rG. Or is paid by its debtors. ♦ Gov deficit can be split in two: ◊ The primary deficit is G1 - T1 ◊ Interest payments rG(D1) on inherited debt from the past. ♦ IBC is obeyed if: in period 2 the primary deficit is enough to repay the primary def in period 1 + the interests on that deficit + the interest and principal on old debt (D1) ? ♦ T2-G2 = (1+rG)(G1-T1) + D1 + rGD1
How do you calculate nominal deficit?
nominal deficit is the deficit determined by looking at the difference between expenditures and receipts.real deficit: nominal deficit - (inflation x total debt)
What is the noun of deficit?
An example of using the noun, deficit, is: "an annual operating deficit."
What is the difference among fiscal deficit budget deficit revenue deficit and trade deficit?
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
What is monetized deficit?
Monetized deficit is when the government prints money to pay down the deficit.
Does Costa Rica have a deficit or a surplus?
Deficit
What is the concept of deficit financing?
Concept of deficit
What is a current account deficit?
current account deficit
