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UPSC Prelims 2025 GS Paper 1, question 65

Topic: Economy

Q65

A country's fiscal deficit stands at ₹ 50,000 crores. It is receiving ₹ 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹ 1,500 crores. What is the gross primary deficit?

  1. (a) ₹ 48,500 croresCorrect answer
  2. (b) ₹ 51,500 crores
  3. (c) ₹ 58,500 crores
  4. (d) None of the above

Solution.

Answer: (a) ₹ 48,500 crores

  1. Gross Primary Deficit is defined as Fiscal Deficit minus Interest Liabilities; non-debt creating capital receipts (₹10,00010,000 crores) are already deducted when computing the Fiscal Deficit (₹50,00050,000 crores).
  2. Therefore, Gross Primary Deficit =50,000−1,500=48,500= 50,000 - 1,500 = 48,500 crores (in ₹).

Trap: Do not subtract the ₹10,000 crores of non-debt creating capital receipts again; they are already accounted for inside the given Fiscal Deficit.